Libmonster ID: PH-1590

The key point of all China's development programs was industrialization, which was considered as a means of developing productive forces and strengthening the economic power of the state. Due to rapid economic growth and a permanent increase in the degree of modernization of all sectors of the national economy, the demand for energy in China is increasing at a progressive pace, especially the demand for oil and gas.

:Keywords energy strategy of the People's Republic of China, current problems of the Chinese energy industry, energy policy of the People's Republic of China in Central Asia.

In terms of energy production and consumption, the People's Republic of China is one of the largest countries in the world. In terms of oil production, China (5.1% of global oil production) [BP Statistical..., 2012] ranks fifth 1 after Saudi Arabia (13.2%) [Neft of Russia, 2011], Russia (12.8%), the United States (10.4%), Iran (8.8%) and second place [Krinitsky, 2010 In global energy consumption, imports account for over 50% [Is China getting enough energy?, 2010].

China has gone through three stages of industrialization. The first - "narrow state industrialization" (1950-1980) and the second - "general industrialization" (1981-1995). The third period of industrialization is associated with the perspective program "The 9th five-year Plan of Economic and social development of the People's Republic of China and the perspective program until 2010" ("Program 2010"), the purpose of which was a deep comprehensive scientific and technical reconstruction of the entire national economy, its informatization, formation and development of high-tech production.

According to Chinese scientists (Wang Shaoguang, Hu Angang, Ding Yuanzhu, 2002, p. 32), China has now entered the final stage of industrialization. The current industrial structure in China sharply reveals an imbalance in the production, consumption and transportation of energy resources, which may call into question the continued pace of further industrialization.

Generalized indicators of four (out of six) main 2 economic regions of the country indicate that the level of industrialization of the Eastern region of China has reached 78%, the North-Eastern region - 45%, the Central-Southern and North-Western economic regions of the country-30 and 25%, respectively (Figure 1). It is obvious that

1 2009 6th place.

2 Official statistical materials, government and party documents of the People's Republic of China mention six economic regions, the so-called cooperation regions, which are distinguished according to the principle of economic complementarity of parts of the region, its independence and the possibility of independent functioning: North-Eastern, Northern, Eastern, Central-Southern, South-Western and North-Western. The level of industrialization in the Southwestern and Northern regions is insignificant.

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Figure 1. The level of industrialization of the main economic regions of China 3

The level of industrialization in the central and western parts of the country remains rather low, and the development of districts and cities is uneven.

According to Chinese scientists, in the coming years, China's energy demand will increase due to the following reasons: first, due to the growth of industrial production; second, due to the rapid growth of electricity consumption as the standard of living of the population increases [Quanqiu nengyuan da qiju, 2005, pp. 298-300]; third, due to the growing demand for electricity in the country. motorization [Zhongguo qingnian bao, 01.09.2011], which increases the demand for gasoline and diesel fuel; fourth, as the country becomes more urbanized and, as a result, the rapid growth of capital and road construction, which inevitably leads to an increase in energy consumption [Ostrovsky, 2009].

Today, China ranks second in the world in primary energy consumption, second only to the United States, and third in the world in primary energy production after the United States and Russia [Wu Kang, 2003, p. 3]. Moreover, the amount of energy resources that China will import in the period 2010-2020 will be critical for ensuring its modernization and development [Voskresensky, 2007, p. 34].

According to the Institute for International Studies of the Ministry of Foreign Affairs of the People's Republic of China, the energy situation in China is characterized by three main points [Xia Yishan, 2010]. First, the structure of the national fuel balance of the PRC has certain specifics (Table 1). It is not rational, with a high share of coal, a small share of oil, and a small share of natural gas.

Second, rising energy demand in China is driving a widening gap between supply and demand. As a result, there is a high dependence on oil imports (Table 2). Solving this problem becomes an important task for improving China's energy security and requires a strategic approach.

Third, geographically uneven distribution and insufficient reserves of energy resources, as well as an undeveloped structure of energy supply (production - transportation - consumption) hinder the effective development of the energy sector. Most of the industrial consumers of energy resources are located in South-Eastern China-in economically developed coastal areas, while the geography of the main sources of energy resources is located in remote regions from this zone. -

3 Compiled by: [Xia Yishan, 2010].

4 In the People's Republic of China, when the GDP per capita indicator reaches $ 1,000. across the country, power outages began. If the Chinese economy reaches a GDP of more than $ 3,000 per capita in 2020, energy consumption should double.

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Table 1

China's energy balance structure

Types of ensrgorssources

Indicator

Quantity

Share of global sales (%)

Energy balance structure

Total primary energy

Consumption

2.6132 billion tons

21.3

100%

Oil

Stocks

2 billion tons

0.9

Extraction

203.6 million tons

5.1

17.68%

Consumption

461.8 million tons

11.4

Gas

Stocks

3.1 trillion cubic meters

1.5

5.17%

3.14

Extraction

102.5 billion cubic meters

Consumption

130.7 billion cubic meters

Coal

Stocks

114.5 billion tons

13.

Extraction

1.956 billion tons

3.5

70.39%

Consumption

1.8394 billion tons

49.4

Nuclear power

Consumption

19.5 million tons of oil equivalent.

3.3

0.75%

Hydroelectric power station-

Consumption

157 million tons of oil equivalent.

19.8

6.01%

renewable energy

Biofuels

1.149 million tons of oil equivalent.

2

% of the primary price

energy

Other types

17.7 million tons of oil equivalent

9.1

energy sources

0.73

Source: Calculated from [BP Statistical Review of World Energy, 2012].

Table 2

China's dependence on oil imports 1998-2020

Year

Production (million tons)

Import (million tons)

Consumption (million tons)

Import dependency (%)

1998

160.2

36.8

197

19

1999

160.2

49.4

209.6

24

2000

162.6

60

222.6

27

2001

164.8

63.1

227.9

28

2002

164.9

80.5

245.4

33

2003

169.6

91.1

260.7

35

2004

174.1

144.8

318.9

45

2005

180.8

122.8

303.6

40

2006

183.7

145.18

328.9

44

2007

186.7

163.2

349.9

47

2008

189.7

178.8

368.5

49

2009

189

203.8

392.8

52

2010

203.7

251.3

455

55

2011

209.8

266.6

476.4

56

Forecast for 2020

210

309

519

60

Source: Compiled from [BP Statistical Review of World Energy, 2009].

page 86


Figure 2. Disproportions in the distribution of energy resources and the manufacturing industry HP 5

geographies. The distribution of energy resources according to the scheme is as follows: coal in the north, electricity in the south, oil in the east, gas in the west. If we divide the energy reserves available in the PRC into six main economic regions, then the most energy-rich countries are Northern China (43% of all energy reserves), South-Western (28.6%) and North-Western (12.1%). The largest reserves of coal are concentrated in Northern China (64%), water resources - in the South-West (70%), and oil and natural gas - in the North-East (48.3%) [Gao Jian, Dong Xiucheng, 2007, pp. 18-19].

In turn, almost all natural gas is produced in western regions far from the main sources of consumption, which makes it extremely difficult to use it as one of the main energy carriers (Figure 2).
The Report on China's Energy Development 2009 by the Center for Economic Security of the Chinese Academy of Modern International Relations identified the following main threats and risks to China's energy security:

1) Low per capita energy consumption: when calculated per capita, China lags far behind other countries in the world. In particular, China's proven coal reserves account for 147 tons per capita, which is only 41.4% of the global average, its oil reserves account for 2.9 tons (only 11% of the global average), and its natural gas reserves account for only 4% of the global average [Zhongguo nengyuan Fazhan baogao, 2009, p. 16];

5 Compiled by: Gao Jian, Dong Xiucheng. Jiyu mingben heseguan de zhongguo nengyuan zhanlius (China's Energy Strategy based on the concept of Harmony) / / Zhongguo nengyuan (Chinese Energy). 2007, № 3.

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Figure 3. Main provisions of the PRC's energy Strategy

2) poor quality of energy carriers: more than 95% of oil reserves contain a high proportion of paraffin, so oil hardens easily at low temperatures, which makes it difficult to transport and process it. Most of the hard coal is almost impossible to process for the production of coke, and the high methane content in more than 40% of coal mines creates an increased danger for miners [Rynok energeticheskikh resursov Kitai, 2011, p. 13-14];

3) Low energy efficiency: China's overall energy efficiency is 60% lower than that of developed countries [Li Nianfa, 2008, p. 6];

4) unbalanced structure of energy supply and consumption;

5) limited resource base of the country;

6) high dependence on oil imports (Table 1);

7) increased environmental pollution;

8) uneven distribution of energy resources (Fig. 1).

Taking into account the fact that energy issues are placed in the context of national security, the Government of the country has developed an Energy Strategy (Figure 3). This is a comprehensive plan built on the basis of common interests in accordance with the trends of domestic and global energy, including directions, goals, priorities and principles of development, key issues and stages of development of the energy industry and related sectors of the national economy. The main goal of the PRC's Energy Strategy is to continuously meet increasing demand

6 Compiled from: [Xia Yishan, 2010].

page 88
on energy resources. The strategy includes two coordinated and mutually agreed parts: internal and external, which implies the development of domestic and foreign energy markets, the use of domestic and imported fuel and energy resources.

The main provisions of the PRC's domestic energy strategy are as follows [Xia Yishan, 2010].

1. Increased investment in oil and gas exploration and processing.

2. Implementation of measures to save energy and improve fuel efficiency.

3. Intensive development of the use of renewable and secondary energy resources, including hydro, wind, solar, bioresources, and nuclear energy.

4. Development of technologies for the environmentally friendly use of coal.

5. Creating a strategic oil reserve.

6. Saving and rational use of energy.

The goal of the Chinese external energy strategy is to create a reliable energy supply system to fill the gap between the supply and demand of energy resources and ensure the energy security of the state. According to the external energy strategy of the People's Republic of China, the import of fuel and energy resources must meet four requirements:: 1) stability - long-term stable supply of energy resources that meet growing domestic needs; 2) economy - rational fuel price; 3) cleanliness - involving oil and gas in the structure of the national fuel balance, improving energy efficiency, developing renewable and nuclear energy; 4) security - ensuring safe and uninterrupted transportation of energy resources by increasing productivity transnational pipelines.

External energy cooperation of the People's Republic of China should be based on the following principles: international cooperation - relations between China and the importing country; complexity — a multi-factor element, which means the diversification of importers of energy resources, types of energy resources: oil, natural gas, liquefied natural gas, oil sand, etc.; import of commercial and shared oil (joint-stock, investment) with an increase in the share of oil; transportation of energy resources: development of sea and continental transportation, laying oil and gas pipelines, improving the safety of transportation of hydrocarbons; complexity of the content and degree of cooperation in the energy sector.

The content of cooperation implies cooperation in the full cycle of energy resources processing-from geological exploration, production, transportation, and production of finished products, to the process of energy conservation and energy efficiency improvement based on multilateral scientific and technological cooperation, the use of renewable and secondary energy resources, nuclear energy, and the environmentally friendly use of coal, etc.

The degree of cooperation indicates two ways: using the strategy of "attracting to yourself" (Yin Qing lai) - attracting external investment for the development of the fuel and energy sector within the country; attracting technologies, methods of modern management and personnel, and the strategy of "going beyond" (Zou chu qu) to expand cooperation abroad, participate in the development of foreign oil fields. deposits with the help of Chinese capital and Chinese technology.

In recent years, China's energy policy has included not only narrowing the gap between domestic production and oil consumption, but also actively participating in international energy cooperation. In the context of China's growing dependence on oil and gas imports, the most important direction of its foreign energy policy has become the policy of diversifying imported energy flows. China's energy diplomacy operates on three strategic levels:-

page 89
in North Africa, based on Sudan, in Central Asia (CA) and Russia, based on Kazakhstan, and in Latin America, based on Venezuela.

One of the priority directions in the implementation of China's energy strategy is the development of intra-continental supplies of oil and gas raw materials from Russia and Central Asian countries through pipeline transport. According to Chinese experts, the attractiveness of the Central Asian vector of China's energy strategy is determined by the following factors.

First, complementarity of interests. Central Asian countries need investment to develop their oil and gas resources and markets, and China needs to diversify its energy sources.

Secondly, the presence of common borders, which allows the transportation of oil and gas resources without intermediaries. Beijing understands the importance of Central Asia's transit capabilities for transporting energy resources via land trunk pipelines, which seems to be the best guarantee of energy security.

Third, promoting the Northwest China Development Program. This will provide new jobs in the Xinjiang Uygur Autonomous Region (XUAR), which, according to the Chinese leadership, should help stabilize the situation in the region.

Fourth, ensuring a peaceful environment and expanding its influence on the Central Asian countries, which is important from the point of view of Beijing's long-term geopolitical goals [Pan Guang, 2007, p.102].

By implementing its external energy strategy of "going beyond", China is steadily and unhurriedly consolidating its influence and power, acting in the spirit of the wise Chinese proverb of Man Zou - "go slowly". For this purpose, trade and economic relations are used, providing loans on preferential terms, supplying technologies, training personnel, sending qualified workers, etc. A special place is given to mutually beneficial infrastructure projects [Lebedeva, 2009].

China relies on the rapid and efficient implementation of its transport, energy and investment projects in bilateral formats. In the wake of the Arab revolutions, China's traditional routes for delivering oil and gas from the Middle East have become increasingly dangerous and unstable. Under these conditions, the role of overland energy corridors from Central Asia and Russia is dramatically increasing.

According to some sources, the total volume of Chinese investments in Central Asian countries reached about $ 17 billion in 2011. The development of Chinese investments for any purpose stimulates trade turnover between China and the Central Asian states, and also improves a number of macroeconomic indicators of the region's countries. Cooperation in energy resources trade with such a stable "wholesaler-importer" as China contributes to the stability of commercial ties between the Central Asian states at the trans-regional level and the growth of their mining complex. However, focusing on the raw materials sector diverts resources from the processing cluster, without which the formation of a balanced economic structure in the region is extremely problematic [Luzyanin, 2011]. In fairness, it should be mentioned that China has plans to invest in the manufacturing industries of some Central Asian countries. For example, China will build a machine-tractor plant and a plant for the production of nitrogen fertilizers in Kyrgyzstan. It is planned to build a plant for processing cotton and textile industry [Chinese investors set their sights on..., 2012].

Although the oil and gas sector is still the main one in the energy sector and in general in China's economic policy in Central Asia, nevertheless, some diversification of China's economic activity in Central Asian countries by economic sectors is taking place. In particular, among the fuel and energy sectors, in addition to the oil and gas industry, Chinese interests in the region in recent years have increasingly affected the nuclear power industry (Kazakhstan), the electric power industry (Kazakhstan, Tajikistan, Uzbekistan, Kyrgyzstan), and the coal industry (Kyrgyzstan). As a result, China's economic influence in Central Asia is gradually increasing

page 90
It applies to Tajikistan and Kyrgyzstan, which do not have industrial hydrocarbon reserves, and Uzbekistan, which has industrial oil and gas reserves, but does not seek a large-scale increase in their exports [Paramonov and Strokov, 2011].

Kazakhstan remains a top priority for China in Central Asia in terms of developing bilateral cooperation. It accounts for about 80% of the trade turnover between China and all Central Asian SCO member states. The largest area of Chinese investment is the oil and gas industry. The creation of pipeline infrastructure plays an important role in the consistent growth of China's economic presence in Central Asia.

In general, China's investment policy in Central Asia is systemic, large-scale and long-term, pursuing both current commercial and strategic goals.

list of literature

Wang Shaoguang, Hu Angang, Ding Yuanzhu. Jingji fanrong beihou de shehui bu wending (Instability in Society behind Economic Prosperity) / / Zhangliue yu guanli. 2002. № 3(52).

Voskresensky A.D. "Greater East Asia": energy aspects of international relations and security // Energy Dimensions of International Relations and Security in East Asia, Moscow: MGIMO, 2007.
Gao Jian, Dong Xiucheng. Jiyu mingben heseguan de zhongguo nengyuan zhanlius (China's Energy Strategy based on the concept of Harmony) / / Zhongguo nengyuan (Chinese Energy). 2007. № 3.

Does China have enough energy resources? // Based on the materials of the All-Russian Conference "Energy of Russia in the XXI Century-the Eastern Vector" and the 7th AEC International Conference "Economic Cooperation in Asia: What is after the Crisis" in the framework of the Baikal Economic Forum 13.09.2010 // http://www. chinapro.ru/blogs/6/4915/print (accessed: 30.05.2013).

Chinese investors set their sights on Kyrgyzstan // Online magazine "New Politics" // http://www.novopol.ru/-kitayskic-invcstoryi-natsclilis-na-kirgizivu-tcxtl32655.html (accessed: 30.05.2013).

Krinitsky K. The Celestial gigawatt: Great Chinese Energy // Energopolis 2010, No. 6 // http://cnergypolis.ru/portal/2010/427-podncbcsnyj-gigavatt-vclikava-kitajskava.html (accessed: 30.05.2013).

Lebedeva N. B. Bolshoy Indisky okean i kitayskaya strategiya "Nit zhemchuzhuga" [The Great Indian Ocean and the Chinese strategy "Thread of Pearls"]. 2011, No. 9 // http://www.pcrspectivy.info/print.php?ID=104809 (accessed: 30.05.2013).

Li Nianfa. Shiyu wenzhixia de zhongguo nengyuan sykao (China's Energy Strategy in the context of peak oil production) / / Beijing shitguanli ganbu xueyuan xuebao (Bulletin of the Beijing Institute of Petroleum Management Personnel). 2008. № 2.

Luzyanin S. G. China's foreign Policy until 2020 Predictive discourse. // http://www.pcrspcktivy.info/book/vneshnaja_politika_kitaja_do_2020_g_prognosticheskij diskurs_2011-11-29.htm (accessed: 30.05.2013).

Russian Oil: people, companies, and concepts. Field / / Information and analytical portal Neft of Russia // http://www.oilru.com/faccs/33 November 2011 (accessed: 30.05.2013).

Ostrovsky A.V. Report at the Economic Forum in Krynica . 2009 /http://www.globalJ7.ation.su/planct_in changcs/wcst-cast/11585814_78.html (accessed: 30.05.2013).

Pan Guang. China's Energy Policy and Ensuring Energy Security in Central Asia / / Central Asia and the Caucasus, 2007, no. 6.

Paramonov V., Strokov A. China's energy policy in Central Asia and its current significance for Russia. 2011 // http://www.ru.journal-nco.com/nodc/7852 (accessed: 30.05.2013).

Rynok energeticheskikh resursov Kitay: interesy i vozmozhnosti Rossii [China's Energy Resources Market: Interests and Opportunities of Russia].
Xia Yishan. China's Energy Strategy in the New Situation and China-Russia Energy Cooperation / http://www.sci.irk.ru/svmp2010/papcrs/RUS/P2-02r.pdf (accessed: 30.05.2013).

Quanqiu nengyuan da qiju (The situation in the global energy sector). Author of the concept Lu Zhengwei, Tao Jian / Beijing: Shishi Publishing House, 2005.

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Zhongguo qingnian bao (Chinese Youth Newspaper). September 01, 2011.

http://www.bp.com/livcasscts/bp_intcrnct/globalbp/globalbp_uk_cnglish/rcports_and_publications/statistical_cncrgv_rcvicw_2008/STAGING/local_assets/2009_downloads/statistical_review_of_world_energy_full_report_2009.pdf ВР Statistical Review of World Energy 2009 // (дата обращения: 12.07.2013)

http://www.bp.com/scctionbodycopv.do?catcgoryId=7500&contentld=7068481 BP Statistical Review of World Energy 2012 // (дата обращения: 30.05.2013).

Wu Kang. China's Energy Interest // Proceedings of the Conference on central Asia, Global Terrorism and Asia-Pacific Energy Security. Honolulu, Hawaii: Asia-Pacific Center for Security Studies. February 12-14, 2003.

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