CONTEMPORARY EURASIA VIII (2) ContEurVIII2 | Page 76

CONTEMPORARY EURASIA VIII (2)
antagonism and mutually unwelcome behavior between the only
superpower and the fastest growing economic power in the world. Thus,
in order to avoid such a scenario, US policymakers need to develop new
methods and elements of strategy for managing China’s possible
challenges in the Middle East. 32
China’s oil diplomacy
Beijing’s oil diplomacy, particularly its cooperation with Iran and
Iraq in the Gulf region, did not upset Washington’s fundamental
interests. China’s policy also did not cause a commotion or armed
clashes in the South China Sea. Moreover, China forged joint efforts with
its Asian neighbors in energy exploration, except for Japan.
Perhaps China’s relatively ‘gentle’ oil diplomacy can be explained
by its peaceful rise strategy, and also by the fact that oil imports are not
considered to be the only source of energy consumption. In regard to
international oil prices, many significant changes have taken place from
the beginning of the 21 st century compared to the prices during the
second half of the 20 th century. For instance, oil prices have increased
from an average of $13 per barrel from the period of 1950-2002, to over
$50 in 2004-2006. The rapidly growing economy of China stimulated
huge demands for oil imports starting in the late 1990s. From 1997, the
country was still self-sufficient in oil, but as the domestic oil production
decreased and oil consumption increased, its dependence on net imports
of oil rose dramatically, reaching nearly 40 percent in 2004. Beijing’s
consumption of crude oil started to rise significantly from nearly 88
million tons in 1980 reaching to 252 million in 2003 and from 293
million tons in 2004. Thus, accounting for one-third of the total oil
consumption increase in the beginning of the 21 st century, it became the
second largest oil consumer in the world. Consequently, China’s rapidly
growing oil demands were followed by its oil imports. Beijing started to
pay special attention to expanding its relations with oil-producer giants.
For instance, in 2004, China’s overall crude oil imports reached about
123 million tons, which was up by 35 percent comparing to its imports in
2003. The growing trend of China’s energy needs along with its imports
are shown in the following statistics (See Table 5.1). 33

32
Ibid.
“China’s Oil Diplomacy,” 521.
33 Lai,
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