China's Strategy to Secure Natural Resources: Risks, Dangers, and Opportunities

by Moran, Theodore H.

• ISBN13: 9780881325126
• ISBN10: 0881325120
• Format: Paperback
• Copyright: 2010-07-01
• Publisher: Peterson Inst for Intl Economics

Summary

The rapid emergence of China as a major industrial power poses a complex challenge for global resource markets. Backed by the Chinese government, Chinese companies have been acquiring equity stakes in natural resource companies, extending loans to mining and petroleum investors, and writing long-term procurement contracts for oil and minerals. These activities have aroused concern that China might be "locking up" natural resource supplies, gaining "preferential access" to available output, and extending "control" over the world's extractive industries. On the demand side, Chinese appetite for vast amounts of energy and minerals puts tremendous strain on the international supply system. On the supply side, Chinese efforts to procure raw materials can either exacerbate or help solve the problems of high demand.

Author Biography

Holds the Marcus Wallenberg Chair in International Business and Finance at the School of Foreign Service at Georgetown University. Founder and director of the Landegger Program in International Business Diplomacy at the university.

Table of Contents

Preface	p. vii
Acknowledgments	p. xi
Introduction	p. 1
Strategic Patterns of Securing Access to Natural Resources	p. 5
Types of Natural Resource Producers	p. 6
Procurement Patterns of a Large Buyer	p. 6
China's Arrangements	p. 7
Chinese Investments to Secure Natural Resource Supplies	p. 11
China National Petroleum Company and the Greater Nile Petroleum Operating Company, Sudan, 1996	p. 11
China National Petroleum Company and Sinopec with Petrodar Operating Company, Sudan, 2001	p. 12
China National Offshore Oil Corporation (CNOOC) and North West Shelf Venture, Australia, 2002	p. 13
Sinopec and CNOOC, Angola, 2004	p. 14
CNOOC and Union Oil Company of California (Unocal), 2005 (Aborted)	p. 15
China National Petroleum Company and PetroKazakhstan, 2005-09	p. 17
CNOOC and Akpo Oilfield, Nigeria, 2006	p. 17
Chalco and Aurukun Bauxite Project, Queensland, Australia, 2007	p. 18
Sinopec and Yadavaran Oilfield, Iran, 2007	p. 19
Socomin Joint Venture, Democratic Republic of the Congo, 2008	p. 20
Chinalco and Rio Tinto, 2008--09 (Aborted)	p. 21
China Development Bank Loan to Rosneft and Transneft, Russia, 2009	p. 23
Sinopec and Petrobras, 2009	p. 24
Sinopec's Acquisition of Addax Petroleum, 2009	p. 25
China National Petroleum Company's Development of South Pars Gasfield, Iran, 2009	p. 26
China National Petroleum Company's Development of South Azadegan Gasfield, Iran, 2009	p. 27
Appendix 3A: Background on Smaller Cases	p. 35
Rare Earths: A Sophisticated New Resource Model for China?	p. 41
China Surpasses California	p. 42
New Sources of Rare Earths	p. 43
Lithium Supply	p. 44
Policy Implications	p. 45
References	p. 49
Index	p. 51
Table
Strategic patterns of China's 16 largest natural-resource procurement cases	p. 8
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