Markets or Mercantilism? How China Secures Its Energy Supplies

Summary

China takes a variety of measures to protect its access to energy supplies, particularly oil: controlling suppliers; diversifying suppliers, refining capabilities, and transportation routes; developing a strategic petroleum reserve; and securing energy imports. Although some view these actions as unnecessary in a free market, they are a rational strategy to shield China from energy disruptions, particularly U.S. attempts to coerce China by constricting its oil supply.