China, now the world's second largest economy, is concerned with energy security, a key objective for Beijing and underpinning the CCP's political legitimacy. China'

China, now the world's second largest economy, is concerned with energy security, a key objective for Beijing and underpinning the CCP's political legitimacy. China's energy demand exceeds that of other BRIC countries. In recent years, three-quarters of global energy demand has come from China.

Chinese leaders see oil as the most important part of "China's energy security" because it is the foundation of the regime's grand strategy of domestic capacities.

Many Chinese leaders vividly remember the severe oil shortages caused by foreigners in the 1950s. China had to rely heavily on crude oil and petroleum products from the Soviet Union and Eastern Europe but after the Sino-Soviet split in the early 1960s, the Soviet Union stopped supplying oil, leaving China to fend for itself.

China needs to import oil to sustain its economic growth, and in the 21st century, Chinese leaders are actively promoting the security of oil imports. Activities include transnational pipelines, bilateral oil deals and investments in overseas oil fields. This is done to achieve the strategic goal of diversifying oil resources.

China's energy security measures are supply-oriented but managing energy security through a demand-driven approach is just as important. Energy efficiency and greater savings reduce the amount of oil needed to produce a unit of economic output, reducing pressure on energy sources. Hence, China’s energy policy is intrinsically linked to China’s industrial policy.

China's energy security is primarily focused on oil and is now more focused on stable and adequate supply than price volatility. The fact that the American navy protects global sea lanes through which China imports around 80% of its energy makes China reliant on American security for energy transport. How the Chinese navy plans to secure its energy without American support is a domain a lot of experts are researching on.

China's Energy Security Policy

0 Comments