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China's Strategy for Energy Acquisition in the Middle East: Potential for Conflict and Cooperation With the United States
Author(s) -
Dorraj Manochehr,
English James E.
Publication year - 2012
Publication title -
asian politics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.193
H-Index - 12
eISSN - 1943-0787
pISSN - 1943-0779
DOI - 10.1111/j.1943-0787.2012.01335.x
Subject(s) - middle east , china , beijing , rivalry , oil reserves , international trade , mainland china , politics , east asia , economy , business , political science , economics , petroleum , paleontology , biology , law , macroeconomics
In this article, the authors examine China's evolving energy strategy in the Middle East, particularly in the three countries that have the largest energy reserves and form the epicenter of the U.S.‐China rivalry: Saudi Arabia, Iran, and Iraq. With $3 trillion in foreign currency reserves, Beijing is increasingly using its cash to secure future long‐term access to energy in the region. Through energy‐backed loans, as well as upstream and downstream joint ventures, China's policy banks and its national oil companies are pumping up the volume of oil and gas that will flow from the Middle East to the mainland in the 21st century. At the same time, Beijing is embedding itself deeply in the economies of these major oil‐producing states through expanded bilateral trade involving multiple sectors of the Chinese economy. Beijing's monetary strength, coupled with its lack of military involvement and political baggage in the region, has China poised to benefit from its expansive access to the region's energy resources. This article critically examines the political implications of China's energy acquisition strategy, the potential for conflict as well as cooperation with the United States, and the possibility of the realignment of great powers in the Middle East.

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