Bangladesh, Sri Lanka and the Maldives are on
the Maritime Silk Road. South East Asia, which
is part of the BRI’s China–Indochina Peninsula
Corridor, is a strategic channel between China
and the Indian Ocean.
China has obvious advantages in the field of
energy development and equipment manufacturing, as well as strong technical strength in
terms of coal exploitation and renewable energy,
including hydropower. Energy cooperation
between China and ASEAN countries has a good
foundation. At present, China Southern Power
Grid (Yunnan and Guangxi) is interconnected
with the power grids in Laos, Myanmar and
Vietnam, and industries like power transmission,
power exchange and transnational meter reading
have been developed. Power trading is beginning
to take shape. China Southern Power Grid started
to transmit power to Laos in 2009, and Thailand
purchases electricity from Yunnan via Laos. In
October 2008, six 100 MW power generating
units at Shweli River Hydropower Station,
Myanmar’s
largest
hydropower
build-operate-transfer (BOT) project, were integrated with China Southern Power Grid and
started to transfer power to China. Electricity has
gradually become a new growth point in China’s
trade with ASEAN countries.
Cooperation in power investment between
China and ASEAN countries continues to
evolve. In recent years, companies like State
Power Investment Corporation, China Huaneng
Group, China Guodian Corporation, China
Huadian Corporation, China Datang Corporation
and China Three Gorges Corporation work with
ASEAN countries to develop power resources.
For example, the companies have built hydropower stations and coal-fired power plants on a
BOT basis in Laos and Vietnam; and State Grid
Corporation of China jointly operates the
Philippines’ power transmission network.
In 2015, China’s power companies invested
$317 million in the 10 ASEAN countries in
projects of more than $30 million, and $4.63
billion in engineering, procurement and construction (EPC) projects of more than $100
million. Overall, China and the ASEAN countries have a large trade volume of energy products and energy equipment. Energy products
mainly include crude oil, natural gas, coal, coke
and refined petroleum products; energy equipment is both imported and exported, including
complete equipment packages for thermal power
plants and hydropower stations, equipment for
nuclear power plants, and new energy generation
equipment for wind and solar power. The
China-Myanmar oil and gas pipelines interconnect China with ASEAN. They act as an energy
channel for China to the Indian Ocean and play
an important role in diversifying China’s oil and
gas imports. In addition, China cooperates with
Thailand on marsh gas, solar photovoltaic and
biomass power.
10.1.6 Latin America
Oil and natural resources in Latin America are
abundant but underexplored and underdeveloped. This brings opportunities for energy
cooperation and labour export between China
and Latin America.
Latin America is one of the first destinations
of China’s Go Out strategy. However, resource
nationalisation in Latin America and geopolitical
implications from the USA have hindered energy
cooperation between China and Latin America.
Rising international oil prices make Latin
America more eager to shake off US control and
strengthen cooperation with China in finance,
technology, infrastructure and other sectors.
At present, China’s cooperation with Venezuela, Brazil, Peru, Ecuador and other Latin
American countries focuses mainly on energy
trade, oil and gas, engineering and technical
services, and labour export. It covers fields like
exploration, exploitation and refining of oil and
gas resources, and pipeline construction. Latin
American countries need a great deal of investment in oil and gas exploration and development
and engineering and technical services. In the
future, China and Latin America will deepen
their cooperation in those fields and in new
energy as well.
664
W. Jigang and P. Webb
the Maritime Silk Road. South East Asia, which
is part of the BRI’s China–Indochina Peninsula
Corridor, is a strategic channel between China
and the Indian Ocean.
China has obvious advantages in the field of
energy development and equipment manufacturing, as well as strong technical strength in
terms of coal exploitation and renewable energy,
including hydropower. Energy cooperation
between China and ASEAN countries has a good
foundation. At present, China Southern Power
Grid (Yunnan and Guangxi) is interconnected
with the power grids in Laos, Myanmar and
Vietnam, and industries like power transmission,
power exchange and transnational meter reading
have been developed. Power trading is beginning
to take shape. China Southern Power Grid started
to transmit power to Laos in 2009, and Thailand
purchases electricity from Yunnan via Laos. In
October 2008, six 100 MW power generating
units at Shweli River Hydropower Station,
Myanmar’s
largest
hydropower
build-operate-transfer (BOT) project, were integrated with China Southern Power Grid and
started to transfer power to China. Electricity has
gradually become a new growth point in China’s
trade with ASEAN countries.
Cooperation in power investment between
China and ASEAN countries continues to
evolve. In recent years, companies like State
Power Investment Corporation, China Huaneng
Group, China Guodian Corporation, China
Huadian Corporation, China Datang Corporation
and China Three Gorges Corporation work with
ASEAN countries to develop power resources.
For example, the companies have built hydropower stations and coal-fired power plants on a
BOT basis in Laos and Vietnam; and State Grid
Corporation of China jointly operates the
Philippines’ power transmission network.
In 2015, China’s power companies invested
$317 million in the 10 ASEAN countries in
projects of more than $30 million, and $4.63
billion in engineering, procurement and construction (EPC) projects of more than $100
million. Overall, China and the ASEAN countries have a large trade volume of energy products and energy equipment. Energy products
mainly include crude oil, natural gas, coal, coke
and refined petroleum products; energy equipment is both imported and exported, including
complete equipment packages for thermal power
plants and hydropower stations, equipment for
nuclear power plants, and new energy generation
equipment for wind and solar power. The
China-Myanmar oil and gas pipelines interconnect China with ASEAN. They act as an energy
channel for China to the Indian Ocean and play
an important role in diversifying China’s oil and
gas imports. In addition, China cooperates with
Thailand on marsh gas, solar photovoltaic and
biomass power.
10.1.6 Latin America
Oil and natural resources in Latin America are
abundant but underexplored and underdeveloped. This brings opportunities for energy
cooperation and labour export between China
and Latin America.
Latin America is one of the first destinations
of China’s Go Out strategy. However, resource
nationalisation in Latin America and geopolitical
implications from the USA have hindered energy
cooperation between China and Latin America.
Rising international oil prices make Latin
America more eager to shake off US control and
strengthen cooperation with China in finance,
technology, infrastructure and other sectors.
At present, China’s cooperation with Venezuela, Brazil, Peru, Ecuador and other Latin
American countries focuses mainly on energy
trade, oil and gas, engineering and technical
services, and labour export. It covers fields like
exploration, exploitation and refining of oil and
gas resources, and pipeline construction. Latin
American countries need a great deal of investment in oil and gas exploration and development
and engineering and technical services. In the
future, China and Latin America will deepen
their cooperation in those fields and in new
energy as well.
664
W. Jigang and P. Webb