Transcript china`s booming energy reltions with africa

CHINA’S BOOMING ENERGY
RELTIONS WITH AFRICA
ippr conference
‘The role of China in Africa’
Wednesday 28th June 2006, 9.30am – 5.35pm
Canada House Trafalgar Square
1 Cockspur Street, London, SW1
Wenran Jiang, Ph.D.
Director, China Institute
University of Alberta, Canada
Overview
I. China’s growing appetite for energy
II. China & Africa: Energy as a new focus
III. Engaging Africa with Chinese characteristics
IV. Questions for policy formation and research
I. China’s growing appetite
for energy
1st in foreign direct investment inflow
1st in foreign trade to GDP radio
1st in foreign currency reserve
2nd largest energy consumer
2nd largest energy producer
2nd largest power market
2nd largest CO2 emitter
3rd largest oil importer
4th largest economy
Home to16 of 20 most polluted cities
China Energy and GDP Growth
1980=100
800
700
220
GDP
Energy
200
600
180
500
160
400
140
300
120
200
100
100
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
80
2000
2001
2002
2003
GDP in 2000 was 6.4 times the level of 1980, energy was 2.16. By 2005, while GDP is 57.3%
above 2000 level, energy is 98% above. SOURCE: BP
2004
2005
Comparison of the Energy
Demand Structure (by sector)
year 2030
year 2000
Agriculture
Transport
1%
10%
Commerce
Households
5%
31%
Agriculture
1%
Transport
26%
Commerce
12%
Industry
53%
Households
17%
Industry
44%
China’s Energy Structure
China’s Energy Structure
Primary Energy Mix（％）
Source: China Energy Research Society, Energy Policy Research, 2003.6
China
Year
World
1980
1990
2000
2003
2003
Coal
72.2
76.2
66.1
67.1
26.5
Oil
20.7
16.6
24.6
22.7
37.3
NG
3.1
2.1
2.5
2.8
23.9
Elec.
4.0
5.1
6.8
7.4
12.3
China oil use & production
(SOURCE: NPR)
US, China & world oil use
II. China & Africa: Energy as
a new focus
Most of China's foreign aid,totaling 7.5 billion yuan
(US$950 million) last year, has gone to more than 50
African countries. Premier Wen claimed that China
has offered Africa more than US$44 billion in aid
over the past 50 years to finance 900 infrastructure
projects.
2001 to 2005, China's trade with Africa increased
268 percent, slower only than the growth of China's
trade with the Middle East in the same period (367
percent), but faster than China's trade growth with
Latin America (238 percent), ASEAN (170 percent),
European Union (184 percent) and North America
(163 percent).
II. China & Africa: Energy as
a new focus
The seven countries on Chinese Premier Wen
Jiabao's latest African itinerary -- Egypt, Ghana,
the Republic of Congo, Angola, South Africa,
Tanzania and Uganda -- have a combined trade
volume of over US$20 billion with China, or 50.6
percent of total China-Africa trade last year.
In the first quarter of 2006, China's trade with
these seven countries amounted to $6.56 billion
dollars, a surge of 168.2 percent.
Today, Africa supplies China with nearly a third of
its oil imports.
III. Engaging Africa with
Chinese characteristics
1. Willing to get into the "troubled zones" with bold
investment and aid packages in exchange for energy
2. Committing large amounts of funding and labor for
exploration and development rights in resource-rich
countries
3. entering into joint-ventures with national governments,
state-controlled energy companies or individual
enterprises for long-term local presence
4. not taking into consideration particular concerns of the
US or other Western countries when selecting energy
cooperation partners, having a different set of standards
on how to advance political reform and human rights in
Africa
IV. Questions for policy
formation and research
1. What is the nature of China’s global quest
for energy?
2. Are all Chinese energy companies’
activities a part of the Chinese state agenda?
3. Will China’s coming to Africa be different
from old colonial powers?
4. What is a sound engagement strategy for
China-Africa relations?
Thank you
Dr. Wenran Jiang
Director, China Institute
University of Alberta
110D TELUS Centre
87 Ave. & 111 St.
Edmonton, Alberta T7G 2R1
Tel. 780.492-9898
Fax. 780.492.8200
Email: [email protected]
Website: www.china.ualberta.ca