Daniel H. Rosen
Visiting Fellow, Peterson Institute for International Economics
China Strategic Advisory
Trevor Houser
Visiting Fellow, Colin Powell Center for Policy Studies
China Strategic Advisory
Contents
INTRODUCTION 4
1 WHAT’S DRIVING DEMAND 6
The Evolution of Energy Demand in China 6
The Current Demand Picture 7
Industry-Led Demand 8
Consumption-Driven Demand 14
2 CHINA’S ENERGY SUPPLY SYSTEM 17
Formal Energy Policy Institutions 17
Informal Channels of Influence 19
Oil and Gas 19
Coal and Power 22
3 GLOBAL IMPACTS 28
World Energy Markets 28
Energy Security and Overseas Investment 30
The Environment 33
Goods Trade and Industrial Competitiveness 35
4 CONCLUSION AND POLICY RECOMMENDATIONS 37
Assessing the Domestic Response 37
Prioritizing the International Policy Response 40
Energy Security 40
Industrial Competitiveness 43
Climate Change 44
REFERENCES 47