	Generational Dynamics
	Forecasting America's Destiny ... and the World's

\| HOME \| WEB LOG \| COUNTRY WIKI \| COMMENT \| FORUM \| DOWNLOADS \| ABOUT \|

Generational Dynamics Web Log for 14-Mar-2011
14-Mar-11 News -- Mideast turmoil raises concerns in China over oil

Web Log - March, 2011

14-Mar-11 News -- Mideast turmoil raises concerns in China over oil

Tensions grow in the South China Sea and East China Sea

Mideast turmoil raises concerns in China over oil

On Thursday, Libyan authorities sent a Chinese oil tanker back to China without its intended cargo of 2 million barrels of oil, according to Reuters. The ship will go to Algeria instead, to purchase oil there.

South China Sea, with blue line added to show region claimed by China as part of its sovereign territory, including oil and gas deposits

South China Sea, with blue line added to show region claimed by China as part of its sovereign territory, including oil and gas deposits

Events like this, arising out of the turmoil in the Mideast, are of great concern to China because of its enormous dependence on imported oil.

China imports about 2.9 million barrels of oil a day from the Mideast, including 1.1 million barrels a day from Saudi Arabia alone, according to the Wall Street Journal (Access). So the turmoil in the Mideast, and especially in Saudi Arabia, represents something of an existential threat to the Chinese. China's dependence on the Mideast is only going to increase, because China's oil imports will increase.

The increasing anxiety on the part of the Beijing government over its dependence on imported oil is undoubtedly a big part of the reason why China has become extremely aggressive in claiming sovereignty over large regions in the South China Sea and the East China Sea.

Last year, a confrontation was growing with China on one side, and with the US, Vietnam and other Asian countries on the other side. (See "24-Jul-10 News -- US confronts China on South China Sea claims.")

China is very aggressively claiming that the entire South China Sea region, including the Paracel and Spratly Islands and some 200 other islands, is China's sovereign terrority, and that they have the right to prohibit foreign ships from entering that region.

The islands themselves may be of little value, but the region is suspected of being rich in oil and gas. Thus, they're claimed in whole or in part by China, Taiwan, Brunei, the Philippines, Vietnam and Malaysia.

Now that confrontation is growing once again.

On Tuesday of last week, the heads of state for Indonesia and the Philippines met in Jakarta to discuss cooperation on combating terrorism, but also to discuss forming a common front to counteract China's claims to the Spratly and Paracel islands, according to the Asia Sentinel.

Just as important as the oil and gas rights to the region is the issue of freedom of navigation across the South China Sea, one of the world's busiest waterways. If China were allowed to assert sovereignty over the region, then the interests of all Asian nations, as well as those of the United States, would be harmed.

China repeated its previously stated hard line on the issue. A Chinese Foreign Ministry official is quoted as saying that they're willing to talk about it, but the bottom line is: "China holds indisputable sovereignty over the South China Sea islands and their adjacent waters."

China is not stopping with claims to the islands in the South China Sea. China also is in a simmering dispute with Japan over the issue of sovereignty over the Senkaku Islands (called the Diaoyu Islands by the Chinese) in the East China Sea. In 2005, the dispute became so bitter that military action was being threatened on both sides. (See "China and Japan head for military confrontation over disputed islands.")

Then a new confrontation developed last year, when the Japanese arrested a Chinese fishing trawler captain, but was forced by the Chinese to return him to China. (See "26-Sep-10 News -- China turns the screws on a humiliated Japan.")

Last week, the conflict flared again, when Japanese jets confronted Chinese planes near the disputed islands. However, the Chinese planes didn't enter Japanese air space, and so the Japanese decided not to lodge a complaint, according to the BBC.

This conflict could end up involving the United States. The disputed islands are currently administered by the Japanese, and last year Secretary of State Hillary Clinton confirmed that America is committed to defending Japan, under a 1960 treaty, if China attacks the disputed islands.

So the turmoil in the Mideast doesn't just threaten the world with having to shiver in winter. It also threatens military confrontations between China and other Asian nations, as well as the United States.

(Comments: For reader comments, questions and discussion, see the 14-Mar-11 News -- Mideast turmoil raises concerns in China over oil thread of the Generational Dynamics forum. Comments may be posted anonymously.) (14-Mar-2011) Permanent Link
Receive daily World View columns by e-mail
Donate to Generational Dynamics via PayPal

Web Log Pages

Current Web Log

Generational Dynamics Web Log for 14-Mar-2011 14-Mar-11 News -- Mideast turmoil raises concerns in China over oil

Mideast turmoil raises concerns in China over oil

Web Log Pages

Generational Dynamics Web Log for 14-Mar-2011
14-Mar-11 News -- Mideast turmoil raises concerns in China over oil