The Strategic Implications of China's Energy Needs

This chapter examines the implications of China&s;s evolving energy security policy for Western strategy towards China and the wider Asia-Pacific region. China&s;s energy security policy is therefore inevitably affected by the broader strategic context and health of Sino-US and Sino-Western relations. Western strategy towards China will be influenced by the degree to which China&s;s quest for energy security appears to conflict with Western strategic interests. While taking these qualifications into account, the argument of this chapter supports the liberal interdependence view and contends that the more alarming projections of how China&s;s energy security policy may influence China&s;s behaviour are generally exaggerated. The external strategic implications of this benign scenario are that China would be gradually integrated with global energy markets. It would also build a strong domestic interest in support of the unimpeded operations of the global energy market. If effectively managed, the reformed state oil companies, like CNPC and Sinopec, could become major players competing with the Western multinationals.