Wednesday, February 7, 2007

U.S.-China energy competition with American enemies and allies

CHINA GOOD:

I searched "energy," "competing," and "China" and came across a very thorough, well-written article published in the Winter 2006 issue by Flynt Leverett and Jeffrey Bader, two China and Middle East specialists from the Brookings Institute. It's called "Managing China-U.S. Energy Competition in the Middle East," a perfect complement to our in-class discussion. http://www.twq.com/06winter/docs/06winter_leverett.pdf

First, I wanted to make sure that the article comes from a credible source. Published by CSIS (The Center for Strategic International Studies), The Washington Quarterly online seemed like it would be an authoritative and scholarly resource, since it's a compilation of diverse voices associated with established think tanks (CSIS and Brookings). The TWQ lists topics that it covers as: "the U.S. role in the world, the emerging great powers, missile defenses and weapons of mass destruction, global perspectives to reduce terrorism, regional issues and flashpoints,the implications of global political change, [and] views from the U.S. Congress."

The article brought up thought-provoking points that lent in-depth color to the in-class examples that Prof. Tom gave about U.S.-China competition for energy in Sudan. For example, let's talk reasons for China's "charm offensive" in Africa: if the U.S., it's hands locked up in a self-righteous moral handcuff, refuses to deal with Sudan's totalitarian, genocidal governement, then China certainly will -- to make a point ("We're not jerks like those two-faced Americans!") and to secure more oil to fuel its swelling economy.

Same goes for China's V.I.P. treatment of the Middle East, say Leverett and Bader. In Iran, NORINCO is helping expand the subway systems in Tehran, a Chinese fiber-optic company is helping build a broadband network, and Chinese automobile and TV manufacturers are building factories.



"From a strategic perspective, these investments are meant to bolster China's positive image in Tehran as a long-term customer of Iranian oil and gas at a time when Iran's options for international economic cooperation are limited because of its poor political standing with the U.S. ," they write.

















China continues to develop export and investment ties indiscriminately, even with long-time U.S. ally Saudi Arabia, to satisfy its voracious hydrocarbon appetite and perhaps, as Leverett and Bader write, to communicate clearly to the U.S. that China is a "serious player" on the global stage. The TWQ article itself paints an equally clear picture: both Iran and Saudi Arabia have responded positively to China's diplomatic come-ons and China, as a member of the U.N. Security Council AND the IAEA Board of Governors (really? I was surprised -- doesn't China provide nuclear technology to smallish rogue countries? Isn't it otherwise nuclearly involved in some irresponsible way?), is a desirable suitor hard to refuse. That is, countries with distressed or hopefully developing economies cannot afford implement idealistic, discriminatory policies like the U.S. Most countries (Singapore and China come to mind) must take practical measures, and that means China will continue to make them offers they can't refuse.

I value the TWQ as a source for news about China's energy contention with the U.S. because it was more in-depth than a typical magazine or newspaper source, full of background statistics and examples to support its points, and less simplistic and knee-jerk reactive to the issue.


CHINA EVEN BETTER:

But of course the Middle East would be a major region of contention between China and the U.S. After all, those extremist, terrorist infested countries (right?) are insidiously anti-U.S. in every way possible -- almost downright eeee-VIL. What about Canada? Would good ol' neutral, nonoffensive Canada, always happily beholden to its world superpower neighbor, ever betray Uncle Sam?

Yes. The New York Times Business section turned out a great resource on U.S.-China competition for energy in, lo and behold: Canada.
http://www.nytimes.com/2004/12/23/business/worldbusiness/23canada.html?pagewanted=2&ei=5088&en=bec439e3e7482281&ex=1261458000&partner=rssnyt
"Canada, the largest source of imported oil for the United States, has historically sent almost all its exports of oil south by pipeline to help quench America's thirst for energy," says the NYTimes in the article published in December 2004. But not anymore.

China is more than making friends with traditional enemies of U.S.: it's now encroaching on "places such as Venezuela, Saudi Arabia and Canada that are well within the American sphere," said Gal Luft for the New York Times article, a Washington-based authority on energy security issues who is writing a book on China's search for oil supplies around the world.

And the Times doesn't state outright, but it hints at the fact that countries like Canada are getting tired of being taken for granted. "Even so, there is the perception among many in Alberta's oil patch that Canada's rapidly growing energy industry remains an afterthought for most Americans." Uh-oh, and a little word of warning: "That might change, industry analysts say, if Canada were to start exporting oil elsewhere."

Refreshing pair: online I found Canada contrasted with Saudi Arabia/Iran, after the Prof. Tom's example of Sudan in class.

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