Oil and gas trade between China and countries and regions along the ‘Belt and Road’: A panoramic perspective

Abstract

A stable and secure oil supply is essential to achieve sustainable development in China. The country mostly imports oil and gas from countries along the ‘Belt and Road’, which are major destination countries for the export of Chinese-manufactured products. Strengthening trade with these countries is essential to not only secure China's oil and gas supply but also promote development in the area. Based on the global commodity chain and value chain concepts, this paper analyses the status and prospects of the oil and gas trade between countries, considering all trade relations, which avoids the one-sidedness of oil and gas trade analysis based on the demand–supply relationship. We find that the general trade relationship between China and the countries along the Belt and Road is closely related to their oil and gas trade. Oil and gas resources are the main commodities exported to China by countries and regions having close trade relationships with it. Chinese policies should thus focus on developing the oil and gas trade with central Asia and Mongolia and improving the country's competitive advantage in traditional manufacturing exports, which, in turn, can enhance its position in international oil and gas trade.