China's desperate for oil

Discussion in 'General Global Topics' started by dilloduck, Nov 20, 2004.

  1. dilloduck

    dilloduck Diamond Member

    May 8, 2004
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    Austin, TX
    Tension rises as China scours the globe for energy
    By Richard Spencer
    (Filed: 19/11/2004)

    China's insatiable demand for energy is prompting fears of financial and diplomatic collisions around the globe as it seeks reliable supplies of oil from as far away as Brazil and Sudan.

    An intrusion into Japanese territorial waters by a Chinese nuclear submarine last week and a trade deal with Brazil are the latest apparently unconnected consequences of China's soaring economic growth.

    Increased car usage in China is creating a high demand for petrol
    The connection, however, lies in an order issued last year by President Hu Jintao to seek secure oil supplies abroad – preferably ones which could not be stopped by America in case of conflict over Taiwan.

    The submarine incident was put down to a "technical error" by the Chinese government, which apologised to Japan.

    But even before the incident the People's Daily, the government mouthpiece, had commented that competition over the East China Sea between the two countries was "only a prelude of the game between China and Japan in the arena of international energy".

    The Brazil trade deal included funding for a joint oil-drilling and pipeline programme at a cost that experts said would add up to three times the cost of simply buying oil on the market.

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