Pan Guang, Professor, Director of the Shanghai Center for International Studies and the Institute of Eurasian Studies at the Shanghai Academy of Social Sciences, head of the Shanghai Cooperation Organization Studies Center in Shanghai, dean of the Center of Jewish Studies in Shanghai (CJSS), and vice chairman of the Chinese Society of Middle East Studies (Shanghai, China)

This paper is divided into three parts: Chinas energy policy and energy development strategy; Central Asias significance for Chinas overseas energy development strategy; and Central Asias energy security and energy development.

I.  Adjustments in Chinas Energy Policy and Energy Development Strategy

China has now surpassed Japan as the second largest energy consuming country, next only to the United States. In 2006, China imported 145.18 million tons of crude oil, making another record in history. It is expected that by 2010, China could import 180 to 200 million tons of crude oil, over half of its total consumption. Meanwhile, with the steady rise in energy consumption, environmental pollution as well as energy waste will increase, presenting a host of serious challenges to the government and society.

In the face of such a situation, China has begun to gradually adjust its energy policy and energy development strategy, as reflected in the following five areas:

(1) Energy production in the western part of the country is being encouraged, while in the eastern part it is becoming stabilized. To ensure adequate domestic production, the old oil (including gas) fields in

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