Chinese energy policy in Central and South Asia

Abstract China has exploited its relatively strong position following the current global financial and economic crisis, to buy up energy positions throughout Asia. In doing so it is using the tactics it had developed earlier when energy prices were quite high to buttress its energy security. That security entails having multiple secure sources of energy over land that cannot be interdicted by hostile naval forces. But beyond that, China's stronger position vis-a-vis distressed firms and governments allows it not only to buy key energy holdings, but also to exercise greater influence upon these firms’ and states’ policies and induce them to accommodate their policy preferences to Beijing's desiderata. The evidence brought forward here, concerning Russia, Kazakhstan, Myanmar, and Iran suggests that we are beginning to see a pattern of China leveraging its superior economic position in the current climate to induce this accommodating behavior and thereby begin to reorient security behavior in Asia even if it...