China's energy issue has long been under the spotlight in the world recently. Some foreign media even warned against the prospect of "China's demand for energy as a threat to the world". Does that logics hold any water?

A solution based on self-reliance

As Mr. Jia Qinglin, Chairman of CPPCC, put it in his speech at the Boao Forum in April this year, China stands not only as a big energy consumer, but also a major energy producer. Imports, he claimed, only constitute a minor part of China's energy mix which depends mainly on the domestic resources.

Minister of the National Development and Reform Commission Ma Kai has confirmed that the country's domestic supply satisfied 94 percent of the total demand in 2004.

China's energy structure is featured with the predominance of coal which accounts for 76 percent of the country's total energy production and 68 percent of the country's total energy consumption.

The other facts that Ma highlighted about China's energy sources also encouraged his optimism toward the potential of China's energy supply in the future. He insisted that the proved coal reserves are much lower than the estimated geological coal reserves in place, two-thirds of water resources remain to be exploited for power generation, and development of various kinds of new energy still have much room.

China unfairly blamed for the world's oil price surge

Some foreign opinions attributed the world's oil price surge to China's rising appetite for oil. Xu Dingming, Director of Energy Division, the National Development of Reform Commission refuted this view by citing BP's statistics about the world's energy, which had found China imported 120 million tons of oil in 2004, merely 6.6 percent of the world's crude oil imports, a sharp contrast against US' imports of 500 million tons and Japan's 200 million tons. Therefore, Xu concluded it was unfair to say China's remarkable increase in oil demand would be responsible for the world's upsurging oil price.

Four cures for the energy shortage

It is undeniable that the fast growing economy has brought pressure on China's energy supply. China's increasing thirst for energy has led to tight supply of some kinds of energy resources. The government, along with experts, pins hope on 4 "prescriptions" it has written out to ease the energy problem.

First, the self-reliance principle for energy supply should be stuck to. Aggressive efforts should be made on exploiting various energy sources to carry out the strategy of diversified energy mix.

A fundamental planning will be conducted which balances the development of new energy resources and energy saving. Having saved 700 million tons of coal equivalent last year, 45 percent less energy was spent to produce each 10 thousand yuan GDP than in 1990. China plans to further slim industries with heavy energy consumption and encourage technical transformation and innovation. China recognizes that advanced technologies improve the efficiency of energy use, which in turn makes the growth mode more reasonable.

Priorities will be given to development and utilization of renewable energy. More than 13 million rural households are using methane nationwide. Promotion of solar energy use is pushed forward.

Cooperation with world's major energy producers and consumers is strengthened on the principle of mutual benefit and reciprocity, and the pursuit of win-win results. China's intensive and extensive cooperation with major energy producers like Russia is of great significance to easing its energy pressure.

At present, the energy issue is no longer confined within any single nation or region amid the increasing globalization of the world economy. It has become a global issue which can be addressed only by joint efforts of the world community.

China becomes closer to the rest of the world and an important force in the world economy, as well as an integral part of the world's energy system, since its WTO membership. China has kept its commitment to being part of the world's efforts on safeguarding the world's energy security.

As Mr. Ma Kai announced at the Fortune Forum Beijing this year, the sustained, fast growth of China's economy has not caused and will not cause a worldwide tight energy supply.

By People's Daily Online