Impact Of Oil Consumption on China's National Economy

Abstract

China as a large energy-consuming country in the oil industry is particularly significant, and its economy has been affected by oil consumption to a certain extent. The purpose of this paper is to explore the impact of China's oil consumption on the national economy, and whether oil is the center of China's future development. Under the carbon-reducing background, oil in transport will gradually be replaced by new energy sources, and the transition from oil vehicles to trams is inevitable. However, China's economic development so far cannot be separated from oil, and it is very important to guarantee energy security. During the epidemic, the Chinese government's self-imposed quarantine policy led to a significant drop in the number of people traveling, reducing the demand for oil and significantly slowing economic growth. However, as the epidemic is gradually brought under control in 2022, the demand for oil, consumption and investment will gradually rise. This has led to an acceleration of economic growth. This paper analyses the impact of China's oil price volatility, policy and industrial structure changes on a number of national economic factors, namely consumption, taxation, investment and international trade, and finds that oil consumption has so far been on the rise, and accounts for a very large proportion of the economy - excluding transport, oil is also very important in other areas and cannot be fully replaced. It has been found that oil consumption is still on the rise and represents a very large part of the economy - in addition to transport, oil is also very important in other areas and cannot be completely replaced, and consumption will continue to rise, with positive effects on the economy.