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Framework of China's energy insecurity 

Framework of China's energy insecurity 

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Chinaâs energy insecurity largely originates from its constrained availability, questionable reliability, and uncertain affordability of its oil supplies. The countryâs fast industrialization and urbanization, together with demand for infrastructure and increasing popularity of automobiles, requires a lot of energy, but it consumes energy both inte...

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Context 1
... of economic prowess. Recognition of China's multiplying energy demand has directed new attention to its developing problem of energy security. China's energy insecurity can be assessed in terms of actual cyclical, structural and institutional insecurities, and in terms of perceived insecurity of energy availability, reliability and affordability (Fig. 2). It is critical to consider both actual and perceived insecurity because the former speaks to the magnitude of China's energy insecurity and the latter points to the country's policy response to different sources of insecurity. Specifically, perceived insecurity indicates the motivations behind China's proposed solutions and China's ...
Context 2
... a security issue for the country because growing quantities of oil imports magnify the effects of price fluctuations on its economic growth. Since it became a net oil importer, the money China spends on oil imports has grown more than eight times from $2.3 billion in 1993 to $19.8 billion 2003, with an average growth of more than 38% annually (Fig. 12). Moreover, expanded oil imports accounted for only 2.23% of China's total expanded imports in 1993, but by 2003 they made up 4.8% of the country's budget for aggregate imports, more than doubling the share in ...
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... expenditure on crude oil imports as a percentage of China's total import expenditures total money spent on crude oil imports (billion US dollars) total expanses on crude oil imports as a % of total import expanses Figure 12. Chinese expenditures on oil imports and share of total imports 72 ...
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... granted its non-state oil companies import quotas to import oil and oil products for the first time in 2002, allowing them to import 8.28 million tons of oil and 4.6 million tons of oil products. As shown by Figure 20, ever since 2002 the import quotas allocated to non-state owned oil companies have been growing at 15% for both crude oil and oil products. Second, as part of its WTO commitments the central government opened the retail market of oil products, allowing foreign oil companies to open gas stations in China. ...
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... on the floor of the East China Sea. The particular gas field that has been fueling rivalry between the two countries since May 2005 is the Chunxiao Gas Field, which lies on the Chinese side of the line but Japan is concerned that by drilling in the area China may hit veins that extend east of the line and extract resources that belong to Japan (Fig. 21). The Chinese government never recognized the median line claimed by the Japanese government. Instead, Beijing holds the continental shelf extension theory, according to which China Exclusive Economic Zones stretch to a larger extent than that designated by Japan. After two rounds of failed bilateral consultations, the Japanese ...

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Citations

... On the other hand, while the incremental demand for coal-fired power grew at a slower rate, the coal-fired power equipment manufacturing sector showed increasing signs of excess capacity in China thanks to two waves of expansion. In response to the country's struggle to address power shortages plaguing the Chinese society in 2002-2005 (Kong, 2005), the coal-fired power equipment manufacturing sector saw the first round of investment and production boom in the 21st century; the fallout of the 2007-2008 GFC provided the sector with an opportunity to engage in a second wave of expansion as local governments turned to infrastructure buildout as a way stimulate the GFC-battered economy. This turbocharged expansion did not lose momentum until Beijing started to impose caps on CFPP buildout nationwide in the midst of its campaign to fight "the war on air pollution." ...
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... In the last 30 years, insecurity of liquid fuel supply has been the most alarming problem for Chinese leaders, although the rest of the challenges, for example, imbalance of energy distribution, low energy efficiency, and massive pollution, are still noticeable in energy sector. Lacking of availability, reliability and affordability of oil [10] seriously threats Chinese government's fulfillment to its commitment on improving living level, accelerating economy development, safeguarding sovereignty and territory, and realizing the national rejuvenation [11]. ...
... This growing foreign dependence has contributed to China's perceived energy security challenge; that is: can China secure access to adequate and affordable energy supplies from overseas and ship them back without compromising its economic interests and foreign policy interests? This concern is especially pronounced when it comes to the country's dependence on the volatile Middle East and the sea lines of communications, through which over 90 per cent of China's imported energy travel (Kong, 2005). ...
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... Thus, quotas for energy consumption could be set for industries 1983 1986 1989 1992 1995 1998 2001 2004 2007 1983198619891992199519982001. Energy intensity and carbon dioxide emissions in China, 1980-2005, normalised to 1980levels. Source: Energy Information Administration (2007. ...
... The proportional increases in energy intensity were greater for coal and for electricity, which are the fuels of industry, than for oil, the fuel of transport (Hang and Tu, 2007). Total investment in fixed assets jumped from 36% to 47% of GDP over the period 2002-2005. The output of key energy-intensive products rose sharply after the year 2000 (Fig. 5a), and China became firmly established as the world's largest producer of steel (35% of world output in 2006), cement (48% of world output), flat glass (49% of world output), and aluminium (28% of world output; Rosen and Houser, 2007). ...
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... LA CHINE À LA CONQUÊTE DES MARCHÉS ÉNERGÉTIQUES MONDIAUX Hérodote, n°125, La Découverte, 2 e trimestre 2007.20. Pour l'insécurité énergétique cyclique et institutionnelle, voir[Kong, 2005]. 21. ...
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China, the conquest of world energy markets China’s worldwide quest for energy has raised growing interest due to its strategic approach to its energy insecurity. The ambiguous nature of the relationship between the Chinese government and the National Oil Companies (NOCs) has exacerbated international fears about a policy directed by the highest political instances in China in order to divide up global energy resources between the NOCs. This article aims to shed some light on this relationship and, against this backdrop, present China’s international energy policy as a balance of commercial and diplomatic interests and pressures. China’s energy diplomacy can therefore be seen as a flexible and evolving policy, destined to support the pursuit of the NOCs commercial objectives, while moderating their potentially harmful effects
... Similarly, the National Statistical Bureau, charged with handling energy data of the world's second largest consumer of energy, has a three-person staff. 22 By contrast, the United States, the world's top energy guzzler, has a 14,000-strong Department of Energy, of which approximately 2,000 staff map out policy and 600 collect and analyze data. The 30 people within China's Energy Bureau are overwhelmed by the deluge of daily project reviews and approvals, and have little time for drafting the country's energy policy or strategy. ...
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This article argues China’s energy security challenges begin at home and many of them essentially boil down to its institutional problems. Specifically, it illuminates how the fragmentation and compartmentalization of the country’s energy decision-making system, the weak capacity of its energy regulatory capacity, and the insufficient liberalization of its energy market at home have together constituted the source of much of its energy insecurity.
... The former concern stems from the fact that China imports oil from about 30 countries, the majority being less than stable countries in the Middle East and Africa (See Figure 5). As a result of this concentration, China perceives its oil imports can easily be affected by the unstable geopolitical situation in these two regions (Kong, 2005;Ning, 2009). However, a key feature of Chinese strategic thinking on energy security is that there has been increasing discourse about the "collateral damage" on oil imports reliability from adversary powers" actions in the regions, mainly U.S. and its allies. ...
... Given China"s increasing dependence upon foreign oil, high oil prices are particularly perceived as inimical to its economy since they will increase outflow of its foreign exchange reserves and affect its balance of payment (Zhang, et al., 2002). More importantly, the government is extremely concerned that high oil prices will slow down China"s GDP growth, which underpins its stability and the survival of the political regime (Downs, 2004;Kong, 2005). ...