Go West: The Central Asia Factor in Chinese Energy Security

This working paper examines the growing importance of Central Asia in Beijing’s expanding energy diplomacy, focusing on China’s drive to secure external oil and gas supplies through state-to-state negotiation as well as cooperation within multilateral organizations. Since the late 1990s, China has been increasing its visibility in Central Asia by means of bilateral energy development deals, including pipeline construction contracts. It has also done so multilaterally, through institutions such as the Shanghai Cooperation Organization (SCO). These endeavours constitute a shift towards a more integrated and comprehensive energy policy in the region, and have enabled China to elevate its standing as an energy partner in the region and also react to the growing competition for Central Asian oil and gas supplies and diplomatic influence from the West and from Russia. This working paper begins with an overview of China’s energy diplomacy, followed by a study of the role played by Central Asia in these policies. It then presents bilateral case studies of Chinese relations with Kazakhstan and Turkmenistan, which are swiftly becoming two of China’s key oil and gas suppliers. Finally, the working paper explores the case of the Shanghai Cooperation Organization as a means of facilitating China’s energy policies in Eurasia. Although China has made great inroads in developing energy links with the Caspian region, there remain significant policy obstacles, emanating both from Eurasia and from outside competitors like the USA and Russia. These can be expected to affect Beijing’s energy diplomacy with Central Asia, as well as the overall goal of improved access to continental fossil fuels