The oil and gas links between Central Asia and China: a geopolitical perspective.

This paper is dedicated to a better understanding of the oil and gas links between Central Asia and China and the sequential implications. The author's message is threefold. 1. China's growing economic momentum, coupled with its energy constraints, has led the country to search for overseas resources. Considering the fact that Central Asia enjoys prolific hydrocarbon resources, while China has huge energy demands, there is no doubt about the economic and geopolitical importance of Central Asian resources to China. What China needs to do now is to build a bridge to link these resources. The key rationale behind this is a regional energy linkage, which constitutes a new visionary way of handling input into China. 2. Considering the costs of the transportation infrastructure inside China and the comparison between the replacement costs of foreign and domestic oil, it makes sense for China to move westwards to maximise the benefits from Central Asia and other neighbouring regions. At the same time, China has to bear the huge cost of overseas expansion and high risk, both economically and geopolitically. 3. China cannot ignore the new "Great Game" played in Central Asia and the Caucasus region. All the major powers involved so far have their varying motivations and advantages to reap from their influence on the landlocked region. China, advantageously positioned on the border of Central Asia, sees an opportunity to broaden its geo-economic role in the region and beyond, so as to become a more important geopolitical force. At the turn of the century, China will give higher priority to market penetration and aggressive diplomacy. Further alliances and geopolitical goals in Central Asia, the Middle East and Russia will be explored. However, the benefits to China will depend on the effective management of uncertainties and the status of its geopolitical strength. [ABSTRACT FROM AUTHOR]