on capacity sharing and actively participate in
global energy governance; (iii) speed up the
development of energy cooperation projects to
interconnect energy infrastructure in BRI countries and regions; and (iv) conduct research on
cross-border transmission systems and collaborate on power grid modernisation.
The 13th Five-Year Plan (2016–20) for the
Development of the Power Sector states that
China will: (i) use all available domestic and
international resources to promote international
cooperation on power system equipment, technologies, standards and engineering services; and
(ii) drive the building of interconnected power
grids and encourage Chinese power companies to
participate in the construction and operation of
overseas power projects.
The 13th Five-Year Plan (2016–20) for the
Development of the Coal Sector states that China
will: (i) strengthen international cooperation on
coal to sharpen the competitiveness of China’s
coal sector; (ii) steadily develop international
coal trading to promote the development and use
of overseas coal resources and expand overseas
engineering, procurement and construction projects and technical services; and (iii) promote
international win-win cooperation on coal
capacity to develop overseas coal resources,
build support infrastructure and invest in
upstream and downstream coal businesses.
The 13th Five-Year Plan (2016–20) for the
Development of the Oil Sector states that China
will: (i) improve the quality and benefits of
international cooperation on oil; (ii) optimise the
pace of investment and asset portfolio; diversify
overseas investments, investors and modes of
cooperation; and integrate energy and finance—
thus boosting the Going Global strategy of Chinese oil enterprises; (iii) optimise and promote
oil and gas cooperation with Russia, the Middle
East, Africa, the Americas and Asia-Pacific; and
(iv) collaborate on building interconnected
infrastructure in BRI countries.
The 13th Five-Year Plan (2016–20) for the
Development of the Natural Gas Sector states
that China will: (i) implement the BRI and
strengthen cooperation with natural gas producers to develop a diversified supply system and
safeguard natural gas supply security; (ii) establish a multi-level coordination regime to ensure
supply security and safety with countries with
cross-border natural gas pipelines; and (iii) cooperate with natural gas consumers in North-east
Asia to create a regional natural gas market and
improve China’s right to speak on natural gas
pricing.
The 13th Five-Year Plan (2016–20) for the
Development of the Renewable Energy Sector
states that China will: (i) develop the renewable
energy value chain to sharpen the international
competitiveness of China’s renewable energy
sector and play an active role in driving the
global energy transition; and (ii) combine the
development plans and construction demands of
BRI countries to deliver signature collaborative
projects in a timely fashion, thus encouraging a
joint Going Global strategy for renewable energy
consulting, design, contracting, equipment supply and operating companies.
2.9 Strongly Promote Energy Reform
2.9.1 Supply-Side Structural Reform
of the Coal Sector Will Cut
Overcapacity
China has introduced policies to identify the
measures necessary to cut overcapacity in the
coal sector. In early February 2016, the State
Council of China issued Document No. 7, which
set the goal of shutting down surplus coal production facilities. Between March and July the
authorities introduced eight policies to identify
the support measures needed to reposition surplus workers, administer funds for bonuses and
subsidies, manage land and mines for new
capacity, and set environmental constraints.
Despite the sharp slowdown in demand for coal,
China’s coal sector still has strong market
potential in the medium and long terms,
according to the Research Report on Overcapacity Cutting and Development Strategies in
China’s Coal Sector, 2017–21. The coal sector
should, therefore, grasp the opportunities to
implement structural reform of coal supply, seek
policy support, shut down outdated capacity and
420
S. Yaodong and A. Gillespie
global energy governance; (iii) speed up the
development of energy cooperation projects to
interconnect energy infrastructure in BRI countries and regions; and (iv) conduct research on
cross-border transmission systems and collaborate on power grid modernisation.
The 13th Five-Year Plan (2016–20) for the
Development of the Power Sector states that
China will: (i) use all available domestic and
international resources to promote international
cooperation on power system equipment, technologies, standards and engineering services; and
(ii) drive the building of interconnected power
grids and encourage Chinese power companies to
participate in the construction and operation of
overseas power projects.
The 13th Five-Year Plan (2016–20) for the
Development of the Coal Sector states that China
will: (i) strengthen international cooperation on
coal to sharpen the competitiveness of China’s
coal sector; (ii) steadily develop international
coal trading to promote the development and use
of overseas coal resources and expand overseas
engineering, procurement and construction projects and technical services; and (iii) promote
international win-win cooperation on coal
capacity to develop overseas coal resources,
build support infrastructure and invest in
upstream and downstream coal businesses.
The 13th Five-Year Plan (2016–20) for the
Development of the Oil Sector states that China
will: (i) improve the quality and benefits of
international cooperation on oil; (ii) optimise the
pace of investment and asset portfolio; diversify
overseas investments, investors and modes of
cooperation; and integrate energy and finance—
thus boosting the Going Global strategy of Chinese oil enterprises; (iii) optimise and promote
oil and gas cooperation with Russia, the Middle
East, Africa, the Americas and Asia-Pacific; and
(iv) collaborate on building interconnected
infrastructure in BRI countries.
The 13th Five-Year Plan (2016–20) for the
Development of the Natural Gas Sector states
that China will: (i) implement the BRI and
strengthen cooperation with natural gas producers to develop a diversified supply system and
safeguard natural gas supply security; (ii) establish a multi-level coordination regime to ensure
supply security and safety with countries with
cross-border natural gas pipelines; and (iii) cooperate with natural gas consumers in North-east
Asia to create a regional natural gas market and
improve China’s right to speak on natural gas
pricing.
The 13th Five-Year Plan (2016–20) for the
Development of the Renewable Energy Sector
states that China will: (i) develop the renewable
energy value chain to sharpen the international
competitiveness of China’s renewable energy
sector and play an active role in driving the
global energy transition; and (ii) combine the
development plans and construction demands of
BRI countries to deliver signature collaborative
projects in a timely fashion, thus encouraging a
joint Going Global strategy for renewable energy
consulting, design, contracting, equipment supply and operating companies.
2.9 Strongly Promote Energy Reform
2.9.1 Supply-Side Structural Reform
of the Coal Sector Will Cut
Overcapacity
China has introduced policies to identify the
measures necessary to cut overcapacity in the
coal sector. In early February 2016, the State
Council of China issued Document No. 7, which
set the goal of shutting down surplus coal production facilities. Between March and July the
authorities introduced eight policies to identify
the support measures needed to reposition surplus workers, administer funds for bonuses and
subsidies, manage land and mines for new
capacity, and set environmental constraints.
Despite the sharp slowdown in demand for coal,
China’s coal sector still has strong market
potential in the medium and long terms,
according to the Research Report on Overcapacity Cutting and Development Strategies in
China’s Coal Sector, 2017–21. The coal sector
should, therefore, grasp the opportunities to
implement structural reform of coal supply, seek
policy support, shut down outdated capacity and
420
S. Yaodong and A. Gillespie