China's New Oil Development Strategy Taking Shape

A surge in demand for due to rapid economic growth and stagnation in domestic output has turned China into a net exporter since 1993. Faced with increasing reliance on imports to meet its domestic needs, China places a high priority on securing long-term stability of its supply in the next century. Hence a new development strategy focuses on boosting the domestic industry and exploiting overseas resources. In this regard, China has pursued an active oil diplomacy by signing international deals with a diverse range of nations from Central Asia, the Middle East, Africa and Latin America, in particular a series of deals worth US$6 billion with Kazakhstan, Iraq and Venezuela in June 1997. While the overseas ventures will no doubt facilitate China's integration with the world economy, such internationalization of China's industry will also carry significant geoeconomic and geopolitical implications for oil-consuming countries. This book looks at China's development strategy.