Asia must cooperate on energy amid US-Iran tensions

By Hu Weijia Source:Global Times Published: 2020/1/9 22:28:40

Illustration: Luo Xuan/GT

In the wake of the US killing of  Iranian major general Qasem Soleimani, there is a view that chaos in the Middle East will put pressure on China to increase energy imports from the US. However, such a view is simplistic.

As US President Donald Trump touted the nation as a net energy exporter, Washington's Middle East policy is changing. If turbulence in the Middle East reduces oil production in the region and causes a spike in energy prices, the US could benefit as a net energy exporter. 

However, high dependence on imported crude oil in some Asian countries means tight energy supplies may weigh on economic growth in the region. 

Given the US-Iran tensions, which disrupt oil supplies in the Middle East, some observers forecast Asian countries, especially China, will have to diversify their import sources apart from the Middle East, leaving more room for those economies to increase energy imports from the US. If their predictions come true, US-Iran tensions will become a tool for the US to pressure China to hike its purchases of US energy products in trade talks.

If the US gains from the turbulence it created in the Middle East, it means that unilateralism is being encouraged in the world. Fortunately, China and other Asian economies have choices other than the US to ensure a stable energy supply amid chaos in the Middle East. 

Current US Middle East policy is prompting energy cooperation among China, Russia, Japan and South Korea. Russia has long been interested in greater energy cooperation with Northeast Asian countries on the development of pipelines and other oil and gas projects. There is also discussion about a plan for a massive energy "super grid" that connects the electricity networks of China, Japan, South Korea, Russia and Mongolia. Washington's Middle East policy now makes an Asia-wide "super grid" more than a fantasy, as some Asian economies seek to solve energy shortages by strengthening regional cooperation.

Energy cooperation among China, Russia, Japan and South Korea is a good option for those countries to deal with a possible energy crisis caused by turbulence in the Middle East. Other Northeast Asian countries like Mongolia and North Korea can also benefit from enhanced energy cooperation among the four countries.

Economic expansion is driving Asia's growing need for energy. Asia's imports of US energy products will certainly increase in the coming years as China and some other Asian countries increase energy consumption. However, it is more important to promote inter-regional cooperation in Asia, as nations diversify their import sources amid US-Iran tensions.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn

Posted in: COLUMNISTS

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