China’s Energy Trade with the Middle East: Clean Energy versus Fossil Energy

Abstract

In the 21st century, China, with its substantial production capacity, has established itself as the “world’s factory,” becoming the world’s second-largest economy and leading exporter. It also needs a large amount of energy to continue its significant production and supplies almost half of the oil it uses from the Middle East. With its rising influence in economy, technology and military, China’s race with the United States has turned into a geopolitical rivalry. The US and the Western world have been imposing trade tariffs to China in several industries in order to limit its development in new technologies and military fields. On the other hand, in a period when the US’s global leadership has been questioned in recent years and discussions on a multipolar world order have been on the rise, China wants to fill the gap of the US in order to advance its global influence. In such a geopolitical and trade climate, China is developing its relations with the Middle East both to secure its energy resources and as new markets where it can sell new technology products such as electric vehicles and solar energy materials. This study examines China’s dependence on Middle Eastern energy resources and, in return, its investments in clean energy products.