China: A Bull in the Energy Shop

The world rightly marvels at China’s rapid economic ascendancy, but far less appreciated is how its modernization strategy hinges on access to energy. As the Chinese economy continues to expand, so does its thirst for oil, gas, coal, and electricity. China is a major importer of Middle East oil, and today it accounts for 12% of all world energy consumption, second only to the U.S. at 24%.

You can see both forces at work in two unrelated events this week. There’s the visit of Saudi King Abdullah to Beijing this week as part of a larger four-nation swing through Asia — his first foreign trip since becoming monarch last year. And there’s the ongoing global bidding war for the Westinghouse nuclear reactor business, which is largely about supplying Chinese demand for new power plants. “The government has put a big priority on diversifying its energy resources” and getting its energy efficiency up to international standards, notes Li Yong, an energy specialist with the Asian Development Bank in Beijing.

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