China's hunt for oil in Africa in perspective

Zhang, ZhongXiang (2006): China's hunt for oil in Africa in perspective.

Abstract

China is concerned about the security of its sea-lanes for imports and desires to diversify its oil supplies from the Middle East in order to sustain economic growth. These concerns have sparked China’s interest in trying to ensure oil supplies from as many sources as possible and in reducing its overwhelming reliance on seaborne imports of oil, which, in China’s view, is considered less vulnerable to disruption than oil arriving by tankers. In this context, China has turned the eyes on the emerging oil and gas fields in Africa. Through its high-profile oil diplomacy, China has been successful in developing its access to African oil and gas resources. However, China’s oil diplomacy in Africa has been roundly criticized in Western capitals. Washington increasingly perceives that Beijing’s ties to the so-called rogue states undermine the U.S. goals of isolating or punishing these states that fail to prompt democracy, limit nuclear proliferation or respect human rights.

This paper argues that China’s hunt for oil in Africa has been exaggerated by partly-informed commentators, sometimes based on erroneous information, not to mention those that deliberately paint the distorted picture. That said, the paper suggests that, in pursuing its oil diplomacy, Beijing should take into account many factors including Washington concerns, in particular when U.S. concerns also reflect those of a large section of the international community. The paper points out that devoting more resources to build a better future for all and help to eliminate the fear of another Rwanda or Darfur is a positive form that Beijing should take in its engagement with Africa. This way of engagement would be considered more positive by the broad community of states, and helps to enhance China’s security of energy supply and at the same time would significantly reduce one source of tension with Washington. Overall, it will greatly benefit Africa as well as China.

• Item Type: MPRA Paper
• Language: English
• Keywords: China; Oil hunt in Africa; Energy policy
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply ; Prices; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy; F - International Economics > F0 - General > F02 - International Economic Order and Integration; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

References

Aiyar, P. (2006), No ‘Great Game’ between India and China, Asia Times, January 13, Available at: http://www.atimes.com/atimes/China_Business/HA13Cb01.html.

Balfour, F. (2002), A Global Shopping Spree for the Chinese: Mainland Companies Are Snapping Up More Overseas Assets, Business Week, 18 November, Available at: http://www.businessweek.com/magazine/content/02_46/b3808162.htm.

Basu, I. (2005), India Discreet, China Bold in Oil Hunt, Asia Times, September 29, Available at: http://www.atimes.com/atimes/South_Asia/GI29Df01.html.

Bezlova, A. (2006), China’s Soft-Power Diplomacy in Africa, Asia Times, June 23, Available at: http://www.atimes.com/atimes/China/HF23Ad01.html.

Bradsher, K. (2005), Chinese Company to Buy Kazakh Oil Interests for $4 Billion, The New York Times, August 22.

British Petroleum (2006), Statistical Review of World Energy, London.

Eisenman, J. and D. Stewart (2005), China-Japan Oil Rivalry Spills into Africa, Asia Times, November 17, Available at: http://www.atimes.com/atimes/China/GK17Ad01.html.

Kitissou, M. (2005), China and Africa: A Case in ‘Petro Politics’, Center for Global Studies Bulletin, George Mason University, Vol. 1, No. 1, pp. 9-10.

Masaki, H. (2006), Japan Takes on China in Africa, Asia Times, August 15, Available at: http://www.atimes.com/atimes/Japan/HH15Dh01.html.

NDRC (National Development and Reform Commission, 2004), China Medium and Long Term Energy Conservation Plan, Beijing, November.

Pala, C. (2006), China Pays Dearly for Kazakhstan Oil, The New York Times, March 17.

Richardson, M. (2005), Oil-Seeking China Steps on U.S. Toes, New Zealand Herald, February 14, Available at: http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10010884.

Wu, L. and Q. Shen (2006), Will China Go to War over Oil?, Far Eastern Economic Review, Vol. 169, No. 3, pp. 38-40.

Xinhua News Agency (2006), China OGP, Beijing.

Yi, X. (2005), Chinese Foreign Policy in Transition: Understanding China’s ‘Peaceful Development’, Journal of East Asian Affairs, Vol. 19, No. 1, pp. 74-112.

Zhang, Z.X. (2005), Sustainable Energy Development in China: Challenges Ahead to 2020, The Keynote Address at the International Conference on “Staying Ahead of the Energy Scenarios”, Bangkok, Thailand, November 11.

Zweig, D. and J. Bi (2005), China’s Global Hunt for Energy, Foreign Affairs, Vol. 84, No. 5, pp. 25-38.