capability for international projects, and business
experience. Large countries rich in oil and gas
resources usually have a mature international
energy development market. Developed economies, with strong international business capabilities and immense power, dominate the market.
They enjoy a relatively monopolistic position
and form strategic partnerships, which make it
difficult for Chinese companies to access these
markets.
The fifth is the harm caused by the China
threat theory. Hidden behind energy resources
are complex political relationships between
countries. As international energy issues became
politicised, the China energy threat theory started
to spread among western countries in the early
21st century. These countries argued that China’s
growing energy demand would have serious
impacts on geopolitics and international energy
security. Even worse, this distortion is combined
with the theory that China is an economic and
neo-colonialist threat in many energy-producing
countries in Central Asia, West Asia, Africa and
Latin America. Because western countries maliciously hype up the theory, and some countries
blindly believe them, the theory seriously
impacts China’s overseas energy strategy and its
cooperation with other countries.
The sixth challenge are the risks to China’s
cooperation with resource countries. These are
typically political, security or legal risks, or weak
infrastructure. For instance, the cooperation
between China and resource countries in transnational oil and gas development faces many risks and
challenges. Countries with abundant oil and gas
resources in Asia, Africa and Latin America are
important energy cooperation partners for China.
But many of them, especially those in the Middle
East and North Africa, wrestle with security issues,
long-standing and more recent disputes, and
sociopolitical instability. This makes international
cooperation very demanding. China’s economic
and trade cooperation in energy with these countries is confronted by enormous risk.
The seventh external challenge is that China’s
energy consumption and import structures are
becoming similar to those of neighbouring
countries, leading to fierce competition with
Japan, India, South Korea and other countries in
the international energy market. Historical disputes and political obstacles impede energy
security cooperation among the East Asia countries, which makes the current regional cooperation mechanism difficult to improve.
10.3 China’s National Interest
in Energy
Energy: The 13th Five-Year Development Plan
for Energy (2016-20) states that China will seize
the great opportunities of the Belt and Road
Initiative (BRI) to promote the interconnection of
energy infrastructure across BRI countries and
regions. China will implement the strategy of
opening up energy markets, increase international cooperation on production capacity and
actively participate in global energy governance.
Electricity: As stated in the 13th Five-Year
Development Plan for the Power Industry, China
will push forward the construction of
cross-border power transmission and interconnected power grids, encourage businesses to take
part in overseas power projects, and promote
international cooperation on electric power
technologies, equipment, standards, grid
upgrades and engineering services.
Coal: According to the 13th Five-Year
Development Plan for the Coal Industry, China
will drive international coal trade and expand
overseas engineering, procurement and construction projects and technical services to
strengthen the international competitiveness of
China’s coal industry. China will also enhance
coal production cooperation within the international community to promote the extraction and
use of overseas coal resources. China will invest
in upstream and downstream assets and build
associated infrastructure to bring win-win results.
Oil: As stated in the 13th Five-Year Development Plan for the Oil Industry, China will
improve international oil cooperation by exploring different ways of collaboration, increasing
overseas investment and optimising the investment structure. China will also interconnect oil
infrastructure in countries within the BRI.
Special Report 5: International Energy Cooperation and Governance
667
experience. Large countries rich in oil and gas
resources usually have a mature international
energy development market. Developed economies, with strong international business capabilities and immense power, dominate the market.
They enjoy a relatively monopolistic position
and form strategic partnerships, which make it
difficult for Chinese companies to access these
markets.
The fifth is the harm caused by the China
threat theory. Hidden behind energy resources
are complex political relationships between
countries. As international energy issues became
politicised, the China energy threat theory started
to spread among western countries in the early
21st century. These countries argued that China’s
growing energy demand would have serious
impacts on geopolitics and international energy
security. Even worse, this distortion is combined
with the theory that China is an economic and
neo-colonialist threat in many energy-producing
countries in Central Asia, West Asia, Africa and
Latin America. Because western countries maliciously hype up the theory, and some countries
blindly believe them, the theory seriously
impacts China’s overseas energy strategy and its
cooperation with other countries.
The sixth challenge are the risks to China’s
cooperation with resource countries. These are
typically political, security or legal risks, or weak
infrastructure. For instance, the cooperation
between China and resource countries in transnational oil and gas development faces many risks and
challenges. Countries with abundant oil and gas
resources in Asia, Africa and Latin America are
important energy cooperation partners for China.
But many of them, especially those in the Middle
East and North Africa, wrestle with security issues,
long-standing and more recent disputes, and
sociopolitical instability. This makes international
cooperation very demanding. China’s economic
and trade cooperation in energy with these countries is confronted by enormous risk.
The seventh external challenge is that China’s
energy consumption and import structures are
becoming similar to those of neighbouring
countries, leading to fierce competition with
Japan, India, South Korea and other countries in
the international energy market. Historical disputes and political obstacles impede energy
security cooperation among the East Asia countries, which makes the current regional cooperation mechanism difficult to improve.
10.3 China’s National Interest
in Energy
Energy: The 13th Five-Year Development Plan
for Energy (2016-20) states that China will seize
the great opportunities of the Belt and Road
Initiative (BRI) to promote the interconnection of
energy infrastructure across BRI countries and
regions. China will implement the strategy of
opening up energy markets, increase international cooperation on production capacity and
actively participate in global energy governance.
Electricity: As stated in the 13th Five-Year
Development Plan for the Power Industry, China
will push forward the construction of
cross-border power transmission and interconnected power grids, encourage businesses to take
part in overseas power projects, and promote
international cooperation on electric power
technologies, equipment, standards, grid
upgrades and engineering services.
Coal: According to the 13th Five-Year
Development Plan for the Coal Industry, China
will drive international coal trade and expand
overseas engineering, procurement and construction projects and technical services to
strengthen the international competitiveness of
China’s coal industry. China will also enhance
coal production cooperation within the international community to promote the extraction and
use of overseas coal resources. China will invest
in upstream and downstream assets and build
associated infrastructure to bring win-win results.
Oil: As stated in the 13th Five-Year Development Plan for the Oil Industry, China will
improve international oil cooperation by exploring different ways of collaboration, increasing
overseas investment and optimising the investment structure. China will also interconnect oil
infrastructure in countries within the BRI.
Special Report 5: International Energy Cooperation and Governance
667