Source: International Crisis Group
Seoul/Brussels, 9 June 2008: The fear of China “locking up” energy supplies around the world is misplaced, and other countries should work with it to ensure a more cooperative international environment on both energy and wider security issues.
China’s Thirst for Oil, the latest report from the International Crisis Group, examines China’s need for energy and assesses the impact of Beijing’s energy policies on the resolution of conflict by looking at Sudan and Iran as case studies.
China’s need for energy is growing faster than that of any other country. Self-sufficient until 1993, China’s three decades of rapid economic growth have led it to look abroad to meet its energy needs. While its approach until now has been characterised by oil mercantilism, physical control of supplies and distrust of international markets, it is increasingly recognising the value of treating oil as a commodity and adopting a more open approach towards international energy markets and cooperation.
Chinese companies’ investment in oil exploration and extraction in countries and regions suffering from deadly conflict has sometimes led China to take positions counterproductive to conflict resolution, for example in the early stages of the Darfur conflict. At the same time, Beijing is willing to play a more constructive role as it increasingly engages with the international system and learns the limits of a foreign policy based on the traditional principle of non-interference.
According to Stephanie Kleine-Ahlbrandt, Crisis Group’s China Adviser and North East Asia Project Director, “As policy options are formulated in the international community for ending crisis and resolving conflict, in the right conditions, China can play an important role in the solution.”
International cooperation will be facilitated by a better understanding of Chinese energy policy and behaviour. While many in the country’s leadership recognise that domestic policy must focus more on conservation, efficiency, reducing pollution, diversifying the energy mix and upgrading clean technologies, both policymaking and implementation are hindered by conflicting interests at the central, provincial, local and private levels. The need for a coherent energy policy and institutional apparatus to manage energy is more urgent than ever.
The rest of the world’s interest in China’s quest for energy security has never been greater. “Energy security is not a zero-sum game”, says Charles Esser, Crisis Group’s Energy Analyst. “Integrating China into cooperative arrangements presents a chance to enhance global energy security”.
