chapter  5
14 Pages

Sino-Japanese competition and energy security

ByVlado Vivoda

This chapter examines how Japanese and Chinese competition over access to energy resources in Asia is influencing regional energy security. It also examines patterns in regional energy trade and transportation, bilateral energy diplomacy, and sustainability of energy use related to the Sino-Japanese relationship. The chapter demonstrates how competition between the two largest Asian economies shapes the Asia-Pacific energy security environment and leads to diffusion of policy priorities and competitive approaches across the region. National energy policy frameworks summarize existing policies and formulate strategies to support delivery of the core objectives. A common perception in China is that the country's energy security problem is its growing oil deficit. High fossil fuel subsidies also reduce incentives for investment in renewable energy and energy efficiency. Bilateralism is a historically developed practice of realizing the security of supplies. China and Japan use strategic partnerships and bilateral agreements with energy exporters in order to lock-in future supplies.