Energy security through a financial lens: Rethinking geopolitics, strategic investment, and governance in China’s global energy expansion

Abstract

Host states in which China's energy companies make investments have increasingly opposed China's energy investments in their national security reviews based on concerns that these investments have ulterior strategic motives. The suspicion of rationales behind China's overseas energy investments leads to a heated discussion of the role of the government in China’s global energy expansion. This article provides an interdisciplinary review of the leading role in China’s global energy expansion in light of a realist and liberal approach to energy security. This interdisciplinary review has theoretical and policy implications. The international relations literature throws valuable light on the phenomenon of strategic investments, but does not establish clear criteria for strategic investments. This review would suggest that studies on the realist approach to energy security require more research of the criteria for strategic investments. The energy law literature should give more attention to the legal aspects of China's external energy security, in addition to discussing the energy security of the EU and US. For policy implications, the Chinese government could continue to push forward domestic energy industrial reform by addressing strategic concerns of host states. International energy investment arbitration practice could also benefit from the interdisciplinary review because tribunals could better understand the geopolitical assessments of strategic investments.