Coping with energy insecurity: China’s response in global perspective

Abstract

Already the world’s second largest energy consumer, China has accounted for more than a third of the increase in global oil demand since 2000. Due to infrastructural bottlenecks as well as supply shortages, intensified by sustained growth, the PRC is likely to become an increasingly important factor in global oil and gas markets, and to pursue an increasingly active energy diplomacy. Reducing energy vulnerability will be a key imperative. The PRC is striving to reduce its energy vulnerability by: (1) promoting energy efficiency; (2) diversifying away from its heavy reliance on coal and oil, toward nuclear power and natural gas; (3) improving domestic energy infrastructure; (4) promoting national energy champions; (5) deepening reliance on congenial nations; and (6) reducing reliance on sea lanes dominated by the U.S. Navy. Kazakhstan, Iran, Russia, Venezuela, Australia, and African energy producers are special priority targets of its energy diplomacy, which is likely to become more salient in China's overall foreign policy in coming years.