Rice tour raises China’s energy hackles

Between October 11 and 13, US Secretary of State Condoleezza Rice made a brisk tour of five “stans”: Kyrgyzstan, Afghanistan, Pakistan, Kazakhstan and Tajikistan. Analysts say that one key purpose of the journey was to strengthen US influence on Central Asia, especially with regard to energy security.

The backdrop to Rice’s visit was the subtle oil competition between Beijing and Washington. On May 17, 2004, China National Petroleum Corporation (CNPC) struck an agreement with KazMunaiGaz, a Kazakh state-owned oil conglomerate, that the two parties would cooperate in building a US$3 billion pipeline connecting western Kazakhstan’s Atyrau, near the Caspian Sea, with China’s northwestern Xinjiang province. Stretching more than 3,000km, the conduit will channel to China some 20 million tons of oil annually when it is completed by the end of 2005.

..One scenario, which is actually unlikely but terribly upsetting to the White House nonetheless, is that the proposed network would bring Beijing closer to Tokyo and Seoul, while Washington would see a reduction in its influence over key Asian allies Japan and South Korea.

Recent events indicate that China’s plans are making progress.

Asia Times