Energy partnership: China and the Gulf States

One of the most significant developments in the global energy market in the last several years has been China's skyrocketing demand for energy. In 1993, China became a net oil importer for the first time in its history and in 2003 replaced Japan as the world's second‐largest oil importer (after the United States). The country needs more energy to maintain its spectacular economic performance. This study examines China's attempts to satisfy its growing needs for oil and natural gas by increasing imports from Russia and Central Asia/Caspian Sea region. The analysis suggests that despite growing cooperation between the two sides, the Gulf region is likely to satisfy most of China's hydrocarbons needs. Energy partnership between China and the Gulf has already started and is likely to be consolidated over the next few decades. The study also argues that this growing partnership between China and the Gulf should not be seen as a threat to any third party. The global energy market is well‐integrated. Energy policy should not be seen in zero‐sum terms. A China‐Gulf partnership will benefit both sides and contribute to the stability of global energy markets.