The Problems with Beijing's Involvement in Chinese Energy Investments

Sorry for the China-heavy contributions. I do have other interests, I promise. This policy brief from the Brookings Institute, "Untangling China's Quest for Oil through State-backed Financials Deals," deals with one of my primary interests though, and I thought anyone else interested in China's energy security strategy would want to give it a read.

The Brookings brief looks more closely at the impact of China's state-financing and foreign aid practices in its energy policy, and suggests that if Beijing's practices do not change, and China remains on the outside looking in at international finance/investment regimes, the heavy state involvement in energy investment deals could eventually undermine open, competitive international energy markets, and in turn international energy security, as well as international aid.

The brief concludes that China should be incorporated into more international forums that can regulate financial interactions and energy practices, like the IEA and the OECD Export Credit Arrangement. These groupings will not only hold China to legal standards and test Beijing's merit as a "responsible stakeholder" in the international system, but also expand dialogue and build trust among parties so that Beijing does not feel compelled to continue financial practices that can undermine competitive international energy markets or international aid.

For more on this subject, I suggest this NBR study from 2006, and this 2006 Brookings report on China's Energy Security Strategy.

These reports all discuss the implications of China's energy policy for the United States, but I'd be curious to hear if anyone has any insights, ideas, or links that deal with how other actors (India, Northeast Asian states, etc.) view China's energy policy and practices.