Resource Nationalism Issues And National Resource Security Challenges

The stable supply of mineral resources is a vital material guarantee for constructing a new national development pattern.The world economy is undergoing the most significant change in a century.The economic recession and geopolitical conflicts brought about by a series of global events,such as the new epidemic and the Russia-Ukraine conflict,overlap each other and accelerate the transformation of the global economic and trade pattern.As a global production and manufacturing center,China’s long-standing development model of "two-headed,big-in,big-out" resources and markets has been seriously challenged.The threat of energy and resource supply shortages and gaps continues to grow,and sustained and stable economic growth is seriously threatened.Energy and resource security has become essential in maintaining national and financial security.The threat of resource nationalism to the global resource market has been around for a long time,and China’s resource industry sector has also suffered from it,but research on the issue of resource nationalism has not received much attention for a long time.Research on the internal mechanism,transmission path,and action mechanism of resource nationalism lacks systematic integration methods and ideas.Therefore,exploring the causes of resource nationalism and its effects has theoretical value in economics and crucial practical significance for ensuring natural resource security in China.From the 1930 s to the present,resource nationalism has gone through three stages: "early resource nationalism of anti-colonial nature," "resource nationalism in the era of the oil economy," and "resource nationalism in the era of the global division of labor " The three stages of resource nationalism are Despite the differences in expression and influence,they are all rooted in the efforts of resource country governments to seek national resource autonomy and thus pursue economic growth and social progress.Since the beginning of this century,the development of free trade regulation and global division of labor and collaboration systems has pushed the political color of resource nationalism to fade and economic interests to become the main driving force for policy implementation.The variability among countries’ financial systems,political systems,development levels,and cultural backgrounds has led to multiple forms of resource nationalism,including profit-eater resource nationalism,developing economy resource nationalism,and market-based resource nationalism.Under the unbalanced global economic and political system,the structural imbalance the between supply and demand of natural resources has triggered a new wave of resource nationalism and caused uncertainty of global resource market turmoil that will persist for some time.There is still a long way to go to deal with the threats to resource supply brought by resource nationalism and the challenges of global value chain vulnerability.Through a deep understanding of the theoretical and practical challenges of resource nationalism,the article analyzes a series of scientific issues surrounding resource nationalism,starting from the inner generation mechanism,transmission path,and action mechanism of resource nationalism,and puts forward relevant suggestions and opinions on dissipating the threat of resource nationalism and guaranteeing the security of national energy and resource supply from both domestic and international dimensions,taking into account the supply and demand pattern of resource primary products in China The main conclusions are as follows.First,the mechanism of resource nationalism.Although resource nationalism is a means for resource countries to pursue economic growth and social progress,there is a complex political and economic game behind the policy.Focusing on the different interests behind natural resource wealth,the article draws on the “two-tier game” theory to construct the internal theoretical logic of resource nationalism within countries.Based on the records of global events,the thesis uses quantitative analysis to explore the political and economic incentives behind resource nationalism.The results confirm that the rise in global resource prices is the main trigger of resource nationalism policies;domestic political games are the intrinsic driving factors for the emergence of resource nationalism policies;and the root cause of resource nationalism policies is the dependence of the national economies of resource countries on natural resource wealth.The imbalance of the global economic and trade system is the root cause of resource nationalism,which is the effort of resource countries to seek rights and interests from natural resource endowment.Regarding the potential risks of resource nationalism on international investment,relevant stakeholders should have sufficient strategic reserves to deal with the possible interest games.Second,the impact of resource nationalism on the host country’s economy.The significant economic interests behind it drive the recurrence of resource nationalism strategies within resource countries.Based on the analysis of the mechanism underlying the role of resource nationalism,the article further explores the impact of resource nationalism on the host country’s economy.The article first analyzes how resource nationalism,as an economic distortion strategy,works in the national economy and the creative and destructive effects of this role.It also assesses the impact of resource nationalism events on the host country’s economic system through a counterfactual analysis and how policies can influence the national financial system through some core elements.The article further discusses the impact of economic development heterogeneity and regional heterogeneity on the economic consequences of resource nationalism.The thesis argues that resource nationalism has some economic rationality and is an integral part of the economic catch-up strategy of resource countries.Regarding practical effects,the resource nationalism strategy has indeed promoted the economic development of the relevant countries to a certain extent.However,there are still many uncertainties about the strategy’s success.The economic dividends brought by administrative intervention must be supported by efficient government systems and medium-and long-term strategic planning.Third,the impact of resource nationalism on global value chains.The event of resource nationalism poses a severe threat to global value chains,behind which there are complex issues of international capital operation,political games,and global economic cycle changes.Based on the analysis of its internal mechanism of action,transmission mechanism,and economic impact,the article expands the issue of resource nationalism from within countries to the global value chain network.Under the underlying theoretical analysis,six typical cases are selected globally to analyze the threats and heterogeneity posed by resource nationalism to global value chains by combining the time series counterfactual analysis model and input-output model.The results show that resource nationalism events threaten the stability of the worldwide metal market and are transferred along the global value chain network to other industrial sectors in each economy,eventually resulting in a worldwide economic shock.The article then uses an input-output model to analyze the price and welfare effects of resource nationalism shocks and the impact of related events on China’s national economic welfare,including the industry distribution of inflationary pressures and welfare losses.It puts forward targeted suggestions and opinions in constructing a protection and risk warning system for overseas interests of the mineral resources industry,strengthening basic processes and the global governance of mineral resources.Fourth,Challenges of Resource Nationalism in China and Countermeasures.The article reviews and summarizes the challenges faced by China’s natural resource security.Based on the national situation of natural resources and the development prospect of the industry,it constructs a resource nationalism risk evaluation system for China based on the strategic layout of China’s "double cycle," which technically supports China’s natural resources.This system technically supports constructing an "overseas market" and strategic investment decisions in the overseas mining industry.Resource nationalism is a significant hidden danger in the global industrial chain and supply chain system,which challenges the stable supply of primary products in China for a long time and threatens China’s overseas mining assests and interests.The article recommends promoting a more sustainable resource supply system,promoting the reform of the national natural resource management system,establishing a high-quality mining economic system,and promoting the regeneration and recycling of resources.It is necessary to actively address external risks to national resource security,participate in the formulation of rules for global governance of resources,take the platform of international political and economic collaboration and free trade mechanism as a grip,and promote the establishment of a benign monetary exchange mechanism between resource countries and producing countries.In the face of the complex domestic and international development environment,it is necessary to adjust the domestic natural resources development strategy in line with the situation and enhance the resilience of the national primary products industry chain and supply chain.The security and management of natural resources is a major practical challenge for the country’s economic development,and maintaining the security of the supply of natural resource primary products is a matter of stability for the country’s economic development,which is a global and strategic task.Based on previous studies,the article contributes to the study of resource nationalism in three aspects.First,it establishes a political-economic analysis framework for the problem of resource nationalism and proposes different types of resource nationalism generation mechanisms.Second,it presents and argues the scientific issues related to the economic analysis of resource nationalism,which provides theoretical references for future in-depth research on resource nationalism.Third,based on profound analysis of the generation mechanism,transmission path and action mechanism of resource nationalism,a resource nationalism risk index for China is constructed.It provides a new reference perspective for national natural resources strategic planning and technical support for the implementation of the "double cycle" strategy in the field of natural resources.