China’s Quest for Energy in Southeast Asia: Impact and Implications

Energy cooperation between China and ASEAN countries since its initiation in the late 1970s has been viewed as an important part of China-ASEAN relations. As China expanded its FDI to Southeast Asia after the global financial crisis in 2008, cooperation in this field developed to a new level, extending from energy trade to energy resource exploration and related infrastructure-building. However, while some momentum exists towards continued cooperation, several factors are pushing the region towards competition and conflicts. The expansion of China’s outward FDI, the country’s resilience during the global financial crisis and its continuing rapid growth have raised questions about the “China model” of investment abroad. While seeking to maintain regional energy cooperation, China and ASEAN countries are nevertheless more concerned each with their national energy security than with regional energy security as such.