Some global implications of China's new energy policy initiative

Abstract

The "East Data West Computing" project was launched in February 2022 to alleviate the current imbalance of energy distribution in China and to promote the development of a green digital economy. It is designed to improve the ideal energy layout in China, using the abundant renewable energy available in the West to supply electricity for existing and planned data processing and analyzing centers and other high-tech businesses in the East. The nature of the paper is impact analysis based on qualitative and quantitative research methods. The paper's first objective is to quantify the probable impact of the initiative on China's energy balance in general, the electricity market in particular, its expected effects on Chinese energy imports, and its global implications. The second objective is to analyze the expected impact of the new initiative on the international competitiveness of China's high-tech industries and the structural optimization in the eastern digital industry using a two-way fixed effects model as well as its global implications. Based on the analysis, generalized and instructive conclusions are drawn, first, on the role of renewables in the regional distribution of electricity and the green transition, and, second, on the significance of the supply and price of electricity in the competitiveness of high-tech industries. It is assumed that the project would promote the development of green digital industries across the East and west regions. At first glance, the paper is a Chinese case study focusing on global effects and implications, exploring the relationship between electricity production and consumption and how the high-tech industries give a chance to arrive at scientifically novel or new conclusions.