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China, the EU and Latin America : current issues and future cooperation
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40 China theEUandLatinAmerica:CurrentIssuesandFutureCooperation ofeconomicalandcleanenergies Hu2006 .Hehasalsodevelopedanew energysecurityconceptthatcallsformutuallybeneficialcooperation diversified formsofdevelopmentandcommonenergysecuritythroughcoordination. Inordertoencouragethe worldskeyenergyconsumingcountriesto strengthenmutualcooperation Chinahostedamajorenergyconferencewiththe participationoftopoilconsumers theUS Japan SouthKoreaandIndia in December2006.ChinaandOPEChavebeenengagedsince2005inanenergy dialogueaimedatensuringasteadyenergysupply.Chinasdiplomacytoolsfor energysecurityincludedialogueandcooperation andthegoalistomaintainthe stabilityand security ofinternationalenergy supplies.In particular China wishestoengageandcooperatewithkeyplayersinworldenergypolitics which includesOPECandnonOPECenergyproductioncountries aswellastheG8 theG20andthemajoroilconsumingcountries.Atpresent Chinasmainsources ofoilimportsaretheMiddleEastandAfrica whereanumberofcountriesare unstable.Moreover thetransportationofoiltakesplacelargelyontheopen sea andalsothroughtheStraitsofMalacca whereChinafacesthedangerof piratesandterroristattacks.Therefore inordertoguaranteethesecurityof energysupplies China mustdiversifyitsenergyimportsourcesandseekto importoilfromRussia CentralAsiaandSoutheastAsia amongothers. Therearethreekindsofoverseasareasin which Chinaisengaged with regardtoenergy.Thefirstcomprisesmarketseekingcountrieswhichwantto retaincontrolofoilresourcesandusesovereignwealthfundstoexchangetheir crudeoilresourcesformarketinfluence RussiaandSaudiArabia .SaudiArabia accountsforabout17percentofChinasimportedoil.In2006 thetwostates signedapactonenergycooperationthatcallsforincreasedcooperationandjoint investmentinoil naturalgasand mineraldeposits.SaudiArabiasAramco OverseasCo.hasprovided USD750 millionofthetotal USD3 billionin investmenttoconstructapetrochemicalcomplexinFujianprovinceinsouth easternChinathatwillprocess8milliontonnesofSaudicrudeoilperyear.In October2005 CNPCcompletedaUSD4.18billiontakeoverofPetroKazakhstan Inc. Thesecond categoryconsistsofcountriesin poorregionsthatneed unconditionalforeignaidandinvestment Angola Nigeriaandother African countries .ChinaandNigeriasigneddealsthatgaveChinafouroilexploration licensesinNigeriainreturnforacommitmenttoinvestUSD4billioninNigerian infrastructure.ChinaandKenyaalsosignedanagreementforlicensesallowing ChinasNationalOffshoreOilCorporation CNOOC toexploreforoiloffthe coastofKenya. Thethirdcategoryisthosecountriesin whichthe USandother Western