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By forming partnerships with foreign energy companies, Chinese oil firms are finding it easier to acquire energy assets abroad. Partnerships avert political opposition on nationalistic grounds, and safeguard global energy supplies by tying them to China's energy security.

Because of employee opposition, the Chinese province of Henan abandoned for the second time in a month the privatization of government-owned Linzhou Iron & Steel Co. The central government is encouraging the consolidation of the fragmented Chinese steel industry through mergers and privatizations. Article also discusses the increase of worker activism despite the lack of a country-wide workers' rights movement.

In a deal that gives it access to oil fields in Iraqi Kurdistan and offshore resources in West Africa, China's Sinopec Group will acquire Canada's Addax Petroleum Corp. for 8.27 billion Canadian dollars or C$52.80 a share. Addax produced 136,500 barrels a day in 2008, less than 2% of China's daily consumption.

Prompted by investor and political opposition, mining giant Rio Tinto PLC abandoned talks to sell an 18% stake to the Aluminum Corporation of China (Chinalco) for $19.5 billion. The deal would have given Chinalco direct access to some of Rio Tinto's mining assets in Australia. As an alternative to the stake sale, Rio Tinto will issue stock to raise $15.2 billion and raise an additional $5.8 billion by combining iron-ore assets with BHP Billiton in Western Australia.

China and Turkmenistan have signed a deal for China to import natural gas from Turkmenistan and Kazakhstan. Although details of the deal were not available, the talks have involved 30 bil cubic meters of gas per year for the next three decades via a new pipeline.

Heeding the dangers of global warming, China has revised its stand on controlling greenhouse gases. China, which is a major pollutor, is recognizing the social and economic impacts of climate change.

China, with its booming economy and high energy demands, has been unable to control its numerous illegal coal-fired power plants and coal mines. There have been numerous accidents and deaths due to lax safety practices at these facilities, and even basic environmental standards are not being met.

Thirty-four multinational corporations have violated Chinese water pollution guidelines, according to China's Institute of Public and Environmental Affairs. Environmental issues, especially those regarding water pollution, are moving to the top of China's political agenda, and have caused a lot of recent social unrest in China.

Royal Dutch-Shell Group of Cos. of the Netherlands is planning further investment in China in a bid for greater market share in China. The petroleum giant is to invest another $500 million in China in 2006.

China Petroleum and Chemical Corp. is to increase its lessening reserves by planning foreign joint ventures or stake purchases rather than a direct acquisition. It was shut out by the United States government in its attempted purchase of Unocal Corp. last year.