Scholar from Peking University Discusses Impact of US-Israel-Iran Conflict: Global Demand for Manufactured Products Rising

China Youth Daily Client News (Reporter Zhu Caiyun) — The ongoing conflict between the U.S., Israel, and Iran is impacting global supply chains. At the March 17th 2026 Peking University Guanghua Two Sessions Economic Situation and Policy Analysis Meeting, Associate Professor at Peking University Guanghua School of Management and Deputy Director of the Peking University Institute of Economic Policy, Yan Se, said that geopolitical conflicts have increased global uncertainty, triggering a “buying frenzy” for resources and industrial products. The implementation of AI technology has also created huge energy demands.

“These two forces are jointly driving up global demand for manufacturing products, and China, with its advantages in the entire industrial chain and diversified energy strategy, has secured a favorable position,” Yan said. In the first two months of this year, China’s exports exceeded expectations, which is a reflection of this logic.

On March 17th, the post-2026 Peking University Guanghua Two Sessions Economic Situation and Policy Analysis Meeting was held at Peking University Science Park. Associate Professor at Peking University Guanghua School of Management and Deputy Director of the Peking University Institute of Economic Policy, Yan Se, shared insights. Photo provided by the organizer.

Based on this, Yan believes that with external demand driving and cost pressures, China’s more than three-year-long downward price cycle may be coming to an end. He predicts that the Producer Price Index (PPI) may turn positive by the end of June, and the Consumer Price Index (CPI) could rise to around 1.5% by the end of the year, which would help restore corporate profits and improve consumption.

“China’s economy is entering a new cycle driven by long-term factors.” In Yan’s view, the overcapacity and downward price pressures that have troubled China in recent years are changing under the influence of international situations and technological revolutions. Moving out of the old cycle relies on China’s deep industrial and technological strengths.

Source: China Youth Daily Client