Time bomb in east Asia. [Emergence of China as oil giant]
The rapid emergence of China as a major oil producer is fundamentally transforming the geopolitical map of Asia. Its onshore reserves and the potential in the Po Hai Gulf are projected to put Peking at the production level of Saudi Arabia by 1988. The net effect of expanded Chinese oil exports would be to reduce global dependence on the Middle East and the Persian Gulf. The beneficiaries of a Chinese export are likely to be Japan and other politically favored customers, especially in Asia. China has rebuffed American oil company efforts to exchange crude for technical know-how in exploiting undersea reserves. Nine American oil companies hold offshore concessions granted by Taipei and Seoul in waters claimed by Peking. Washington avoided provoking Peking in advance of the Presidential visit in the Fall of 1975 when it dissuaded leading oil companies from drilling in contested waters. Japan sees an opportunity to obtain the greater share of offshore oil and gas without the attendant exploration risks. Japanese leaders hope for a technical partnership in the development of offshore resources in the Po Hai-Yellow Sea area and the East China Sea. China is indicating some form of Sino-Japanese understanding with respect to the continental shelf resources that will permit oil development to go forward even if title questions are not resolved. (MCW)
- Research Organization:
- International Fact-Finding Center of the Carnegie Endowment
- OSTI ID:
- 7180572
- Journal Information:
- Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 20; ISSN FRPLA
- Country of Publication:
- United States
- Language:
- English
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