Study On The Opportunities And Challenges Of Chinese Oil And Gas Cooperation With Central Asian Countries

Energy is the material basis of human activity and the lifeblood of economic development around the world. In the new century, with the rapid development of economy, China’s total energy demand grows substantially, but energy structural contradictions become increasingly prominent. Energy security problem has become the factors restricting the China’s economic and social sustainability. Therefore, actively carrying out international energy cooperation to establish a diversified energy system is the inevitable choice of China’s energy security. Central Asia, as a huge oil and gas reserve, is one of the key areas of China’s international energy cooperation. Central Asia is of great significance to make up for the energy gap, optimize energy structure, play geographical advantages, diversify energy imports and improve bargaining power.Compared with countries such as Russia, US and Europe, China is the latter one to enter the Central Asia in the energy field. However, after ten years of efforts, China emerged in the fierce competition of energy resources, and became an important energy partner in Central Asia. Therefore, focus and research on energy cooperation between China and Central Asian countries will bring a lot of experience and lessons. In the contemporary fierce international energy competition, energy cooperation between China and Central Asian countries undoubtedly exist both opportunities and challenges. How to seize the opportunity and resolve the challenge, to further deepen pragmatic cooperation in the energy sector, and to better safeguard energy security of the country, is a very serious problem for China. In September 2013, President Xi Jinping, paid a visit to Kazakhstan. During his trip he proposed a strategic plan of "Silk Road Economic Belt". Under the background of "Silk Road Economic Belt", research and explore countermeasures for China to expand oil and gas resources’ cooperation with Central Asian countries has more important practical significance. This is also where the purpose of this study lies.Based on the development process, influencing factors, and results of cooperation between China and Central Asian countries in the oil and gas, through comparative analysis of Central Asia countries’ energy situation, the status of cooperation with the Chinese in the oil and gas; Russia, America and the other major countries’ Central Asia strategy and its status of cooperation with Central Asian countries in the oil and gas, this paper explore the positive role of long historical ties, friendly relations between states, close economic and trade relations, a good platform for multilateral cooperation as well as "Silk Road Economic Belt" construction in the oil and gas cooperation between China and Central Asian countries, and analyze the challenges brought by Russia, America and the other major countries’ energy game in the Central Asia, new changes of the security situation in Central Asia, new adjustment of the energy policy of the Central Asian countries. On this basis, this paper put forward some countermeasures for China to expand oil and gas resources’ cooperation with Central Asian countries.This paper attempts to make a breakthrough and innovation in the following two aspects: First, with the whole process of China and Central Asia energy cooperation as the research object, this article analyze the Central Asian countries’ energy situation, the influential factors and actual results of the energy cooperation between China and Central Asian countries from China’s energy needs, then raise the countermeasures for China to expand the Central Asia oil and gas development by exploring the advantages and power and avoiding risks and obstacles. Relatively speaking, it makes a more systematic and scientific study of the problem. Second, at present, China economy has entered a "new normal", which presents a new pattern of relations between China and the world. China timely launched "One Belt and One Road" national development strategies, promoting deeper connectivity and integration along with national and regional. From the context of the "Silk Road Economic Belt", this article focus on the analysis of the advantages and challenges of oil and gas cooperation with Central Asian countries which China has faced currently, in efforts to build a fair and reasonable, win-win cooperation in Central Asia International Energy New Order, thus deepen the research questions.On the basis of these studies, the paper draws the following conclusions:First, under the global context, the relationship between energy supply and demand increasingly tense, Central Asia will become more and more important, which also has geopolitical and strategic resources. Central Asia is "the Hub of the World" and "21st Century Energy New World". Especially the Caspian Sea, which is an oil and gas-rich region, lies on the center of the zone of oil and gas resources and the center of the market of oil and gas’ supply and demand. Compared with the turbulent Middle East, the relatively stable, reliable, potential Central Asia has extremely important status in the world energy. It is undoubtedly one of the preferred areas for major energy consumers’ energy supply diversification strategy.Second, energy cooperation is the common need for China and Central Asian countries. At present, China and Central Asian countries are in a critical period of economic development, which means both sides need to develop energy to achieve their ambitious national development goals. Therefore, to deepen cooperation in the energy sector is the common need for China and Central Asia, in line with the common interests of both sides. According to the actual situation of Central Asian countries, China seeks the common denominator in the interests of all parties, and creates equality and mutual benefit, cooperation and win-win "community of interests" and "community of destiny" in the common development.Third, the Chinese oil and gas cooperation with Central Asian countries has both opportunities and challenges, and the opportunities outweigh the challenges. China and Central Asian countries are close neighbors and important strategic partners. Oil and gas cooperation between China and Central Asian countries has a "day", "location" and "people", and has a good basis for cooperation and huge space for development. However, the complex geopolitical, volatile security situation and changing domestic politics also pose a serious challenge to China and Central Asia oil and gas cooperation. China should seize the important historical opportunity of "Silk Road Economic Belt" construction, deepen oil and gas cooperation between China and Central Asian countries, and provide strong support for building a moderately prosperous society in all respects and realizing "China Dream" of the great rejuvenation of the Chinese nation.Fourth, energy competition in Central Asia is not a zero-sum game, but win-win cooperation. Russia, the United States and the other major powers such as Iran, Turkey, European Union, Japan and India who wants to share energy interests in Central Asian countries, have formulated a respective Central Asia energy strategy, thus formed a complex pattern of energy game in Central Asia. China needs to use the wisdom, take advantage of contradictions, achieve mutual benefit and win-win through cooperation, and make a difference to the "Central Asia oil chess game".Fifth, China should strive to build a fair and reasonable, win-win cooperation energy order in Central Asia. Currently, the energy order in Central Asia is still in the building process. China should take advantage of the positive role of the SCO in the region, properly handle the relationship with Central Asian countries, Russia and the United States, and obtain maximum benefit in the integration of Central Asia’s energy demand and supply.