The Middle East instability, characterized by energy price spikes and shipping disruptions, is compelling China to rethink its supply chain strategy. Consequently, China is increasing its focus on strengthening ties with Latin American nations for diversified resources and partners.

The Iran war has been framed as a Middle East crisis with global energy consequences. That is true, but incomplete. It is also reshaping China’s strategic map. The disruption in the Strait of Hormuz, the jump in oil prices and the shock to shipping and energy markets have reinforced a lesson for Beijing: vulnerability begins with concentration. When one region becomes more unstable, the value of diversified suppliers, routes and external partners rises. That is why Latin America matters more to....