Chinese Oil Diplomacy-The Political Economy Transition from Japan (1978 Daqing Crude Trade) to Russian Oil Relations (Sino-Russian Oil Communiqués 2002/3)

Abstract

The reasons for Chinese oil diplomatic shift from Japan to Russia can be classified into macro environmental geopolitical factors (end of Cold War) to Chinese domestic economic factors (industrialization and the need for oil and geopolitical concerns) to Japanese and Russian domestic factors. Ironically, China's increased oil ties with Russia has seen the PRC come up against its former oil trading partner, Japan. Sino-Japanese rivalry in Russian is demonstrated most graphically and dramatically by their competition over access to Siberian oil, pitting the world's second largest economy against the world's fastest-growing economy. The outcome of Sino-Japanese rivalry over Russian oil resources will determine the shape of East Asian energy outlook for decades to come. Perhaps, emblematic of Sino-Japanese competition over economic resources in East Asia in general. The other significant symbol of this rivalry is manifested in the ASEAN, over the two East Asian giants to win the affection of the Southeast Asian grouping through promises of Free Trade Agreements (FTAs).