Opinion: How the Ukraine War Affects China’s Economy

As the war between Russia and Ukraine rages on, its shockwaves will ripple through the global economy and affect China in five main areas.

First, China's economy faces imported inflation caused by the surge in global prices of crude oil, natural gas, wheat and other commodities. Rising energy prices for manufacturers will be passed to consumers.

Crude oil is the blood of industry and a key factor driving inflation. The crude price surge leads to rises in fuel and raw material prices, pushing up inflation. China’s official reading of the producer price index rose 8.8% in February from a year earlier, driven by rising costs including oil and gas, mining, metal refining and electricity.