cooperation programme to strengthen efforts in
energy diplomacy and improve energy cooperation mechanisms and foreign economic policies.
Diversified external supply of oil and gas is a
requirement of China’s energy strategy, so China
needs to develop bilateral energy relationships
with the main oil producers in the Persian Gulf,
North Africa, the Black Sea and Caspian Sea
region, and the Mediterranean. China should
enhance energy dialogue and participate in
energy development with these regions, make
them more interdependent with China, improve
economic and trade ties, and secure oil delivery
to the Chinese market with free trade agreements.
10.4.3 Diversified Forms
of International Energy
Cooperation
China’s international energy cooperation should
be implemented through different forms of
international cooperation, including energy trade,
agreements and investment.
In international energy trade, China should
continue to actively import energy; compete
extensively in the oil-rich regions; develop
energy cooperation relations in Latin America,
West Africa and South East Asia to diversify oil
import supply; open multiple import channels
that are stable, of high quality and low prices;
and enhance its energy security with more
international supply sources. While improving
energy transport by rail, China needs to expand
into new modes of energy delivery (especially
pipelines), open up new seaways, enhance
international cooperation to maintain maritime
security, and actively explore new routes or types
of transport to avoid choke points. In this way,
China will diversify its delivery routes for overseas oil and maintain a leading role in maritime
transport. China needs to actively participate in
the international oil futures market and use its
position as a big importer to curb price fluctuations and impacts, strengthen the hand of Chinese companies in external negotiations, reduce
the cost of imports, strive for more control over
international oil prices, and raise China’s status
in the international oil market.
International energy cooperation agreements
involve technology and services, exploration and
exploitation, environmental protection and new
energy development. China should actively participate in international energy cooperation
agreements to drive wide-ranging and deep collaborative relationships with other countries
through mining taxation agreements, production
sharing agreements, risk services, joint ventures,
and so on. China should explore specific energy
cooperation projects and sign agreements on oil
and gas exploration with other governments.
These agreements should include trade and
investment, joint projects and labour export services, and upstream and downstream activities.
Chinese companies can use their human and
technological advantages to explore and develop
oil resources in oil-producing countries and provide services in the form of engineering, procurement and construction, and earn a share of oil
in proportion to their (the companies’) input.
In terms of cooperation in international energy
investment, China should encourage domestic
companies to open overseas energy markets and
increase China’s share of international energy
through direct investment. China should protect
domestic companies in overseas energy markets
by signing bilateral investment agreements with
energy producers and by establishing overseas
risk-taking exploration funds. China should
accelerate reform of the overseas investment
approval system, improve overseas investment
laws and regulations, and effectively guarantee
companies’ rights in overseas investment and
operations.
10.4.4 Multi-area International Energy
Cooperation Content
International energy cooperation covers exploration, development, transport, processing and
reserves of oil and gas, as well as environmental
protection.
China can develop extensive collaborative
relations with other countries in energy use,
environmental protection, energy saving, management systems, laws and regulations. China’s
strategy of sustainable energy requires it to
become more efficient in energy development
Special Report 5: International Energy Cooperation and Governance
671
energy diplomacy and improve energy cooperation mechanisms and foreign economic policies.
Diversified external supply of oil and gas is a
requirement of China’s energy strategy, so China
needs to develop bilateral energy relationships
with the main oil producers in the Persian Gulf,
North Africa, the Black Sea and Caspian Sea
region, and the Mediterranean. China should
enhance energy dialogue and participate in
energy development with these regions, make
them more interdependent with China, improve
economic and trade ties, and secure oil delivery
to the Chinese market with free trade agreements.
10.4.3 Diversified Forms
of International Energy
Cooperation
China’s international energy cooperation should
be implemented through different forms of
international cooperation, including energy trade,
agreements and investment.
In international energy trade, China should
continue to actively import energy; compete
extensively in the oil-rich regions; develop
energy cooperation relations in Latin America,
West Africa and South East Asia to diversify oil
import supply; open multiple import channels
that are stable, of high quality and low prices;
and enhance its energy security with more
international supply sources. While improving
energy transport by rail, China needs to expand
into new modes of energy delivery (especially
pipelines), open up new seaways, enhance
international cooperation to maintain maritime
security, and actively explore new routes or types
of transport to avoid choke points. In this way,
China will diversify its delivery routes for overseas oil and maintain a leading role in maritime
transport. China needs to actively participate in
the international oil futures market and use its
position as a big importer to curb price fluctuations and impacts, strengthen the hand of Chinese companies in external negotiations, reduce
the cost of imports, strive for more control over
international oil prices, and raise China’s status
in the international oil market.
International energy cooperation agreements
involve technology and services, exploration and
exploitation, environmental protection and new
energy development. China should actively participate in international energy cooperation
agreements to drive wide-ranging and deep collaborative relationships with other countries
through mining taxation agreements, production
sharing agreements, risk services, joint ventures,
and so on. China should explore specific energy
cooperation projects and sign agreements on oil
and gas exploration with other governments.
These agreements should include trade and
investment, joint projects and labour export services, and upstream and downstream activities.
Chinese companies can use their human and
technological advantages to explore and develop
oil resources in oil-producing countries and provide services in the form of engineering, procurement and construction, and earn a share of oil
in proportion to their (the companies’) input.
In terms of cooperation in international energy
investment, China should encourage domestic
companies to open overseas energy markets and
increase China’s share of international energy
through direct investment. China should protect
domestic companies in overseas energy markets
by signing bilateral investment agreements with
energy producers and by establishing overseas
risk-taking exploration funds. China should
accelerate reform of the overseas investment
approval system, improve overseas investment
laws and regulations, and effectively guarantee
companies’ rights in overseas investment and
operations.
10.4.4 Multi-area International Energy
Cooperation Content
International energy cooperation covers exploration, development, transport, processing and
reserves of oil and gas, as well as environmental
protection.
China can develop extensive collaborative
relations with other countries in energy use,
environmental protection, energy saving, management systems, laws and regulations. China’s
strategy of sustainable energy requires it to
become more efficient in energy development
Special Report 5: International Energy Cooperation and Governance
671