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Energy Economics in China’s Policy-Making Plan Chapter j 17 339


             (US Congress, 2011). However, behind it, other sources of conflict,
             nationalism, geopolitical competition, competing territorial claims, are most
             likely to have been at the root cause of those conflicts (Constantin, 2005). One
             Chinese scholar of strategic studies clearly explains the reason why energy
             security has become a core component of China’s national interest:
               With external trade accounting for almost 50 percent of China’s economy, China
               is now highly interdependent with a globalized market. This shift also includes
               hard social, political and geopolitical choices that deeply impact matters of
               national security. The more developed China becomes the greater its dependence
               grows not only on foreign trade but also on the resources to fuel the economy.
               With these complex and expanding interests, risks to China’s well-being has not
               lessened but has actually increased, making China’s national security at once
               both stronger and more vulnerable.
                                                                  Zhang (2006)
                China’s sensitivity on the confluence of geopolitics and resource politics is
             also derived from the fact that historically China has been a weak sea power.
             One of China’s key weaknesses through centuries of its development and into
             the modern age is its lack of a strong navy to safeguard its global interest, and
             this is perhaps one of the major factors leading to China’s massive investment
             on raising and modernizing its naval capabilities. China therefore has good
             reasons for acquiring an aircraft carrier to enable it to protect its national
             interests (Cole, 2006). China has territorial disputes in the South China Sea
             over the Spratly Islands with neighboring countries and is also worried about
             the security of the major maritime transportation routes through which it
             transports the majority of its foreign trade, as well as its oil imports, upon
             which it is totally dependent. Based on the historical lessons, China has a clear
             understanding on the linkage between its energy security and international
             geopolitics, which is spelt out clearly by one scholar:
               The history of capitalism and its spread globally have shown that it is often
               accompanied by cruel competition between nation states. Those countries that
               lose out are not necessarily economically or technologically underdeveloped or
               those with a low level of culture. Rather, they are most often those nations who
               forgo the need to apply their national strength to national defense and therefore
               do not possess sufficient strategic capability.
                                                             Zhang (2006, p. 17)
                Today the rise of China is due in large part to its rapid emergence as a
             major force in world energy markets and energy geopolitics (Chan, 2011; Lo,
             2011). Beijing’s booming energy consumption and heavy investment for
             energy security have raised a new range of contentious issues between China
             and other world powers that are adding a new layer of issues to the already
             complex and dynamic relationships. China’s economic growth is supported
             by three primary pillars: (1) export-led growth, (2) real property growth,
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