Energy

Among the many issues surrounding China’s ongoing military modernization, perhaps none has been more dramatic than its nuclear weapons program. For decades, the Chinese government was content to maintain a comparatively small nuclear force. As recently as 2020, China’s arsenal was little changed from previous decades and amounted to some 220 weapons, around five to six percent of either the U.S. or Russian stockpiles of deployed and reserve warheads.

To keep oil flowing and diminish the U.S., Beijing brokers a deal between Iran and Saudi Arabia.

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

Russian military action in Ukraine could trigger an energy crisis even more serious than the one already hitting Europe. As has been pointed out, should the West hit Russia with severe new sanctions, President Vladimir Putin could cut off natural gas exports, leaving the continent shivering through midwinter. Yet there is another potential weapon of Russia’s that’s been less discussed and might be very effective: An ability to disrupt global oil markets, which would directly hit U.S. consumers.

Whether they regard it as competitive, cooperative, or confrontational, virtually all observers agree that the U.S.-China relationship is consequential. From cyber norms and AI to military tensions in the Taiwan Strait and the global struggle to turn the tide on climate change, how Washington and Beijing manage their shared future will shape the globe for decades to come. Through research and relationship-building, the Center is dedicated to helping the U.S. and China collaborate and compete without conflict.

While China is building nuclear reactors faster than any other country in the world, major constraints may limit nuclear energy’s ability to grow to the scale of hundreds of gigawatts that would be required for it to play a major part in decarbonizing China’s energy system. This chapter explores the major constraints on, and risks of, large-scale nuclear energy growth in China, and how both new policies and new technologies might address them. It focuses particularly on the two biggest constraints – economics and siting. Substantial government policies to support nuclear power and advanced reactor systems designed to address some of the key constraints are both likely to be needed for nuclear to have a chance of playing a major role in decarbonizing China’s energy system; nuclear energy’s role may be bigger in the second half of this century than in the first half.

President-elect Joe Biden’s decision to create a new cabinet-level position for climate-related issues — and to choose so prominent a figure as former Secretary of State John Kerry to fill it — demonstrates Biden’s sincerity over putting climate at the very center of U.S. foreign policy. It is easy to understate the importance of this appointment, given the flurry of czars created by most new administrations.

The geopolitical and geo-economic forces wrought by the coronavirus pandemic, as examined previously in this series, are likely to slow the transition to a more sustainable global energy mix. Fortunately, the pandemic has also resulted in governments gaining vastly greater influence over whether this shift stalls or accelerates.

For most people, there was nothing to celebrate when the International Monetary Fund downgraded its outlook for global economic growth in June, anticipating a contraction of 4.9% for 2020. Yet for others, such as the small but persistent group of economists and others known as the “degrowth movement,” the Covid-induced economic slowdown has a silver lining.

The search for silver linings to the coronavirus pandemic has come up woefully short. But one hopeful — and much talked of — prospect is that the disruption will accelerate the global shift to a more sustainable energy future.