China, the world's second-largest oil consumer, hopes dialogue and conciliatory policies will blunt tensions caused by its growing energy needs, a Foreign Ministry official said on Wednesday.
BEIJING — China, the world's second-largest oil consumer, hopes dialogue and conciliatory policies will blunt tensions caused by its growing energy needs, a Foreign Ministry official said on Wednesday.
Liu Jianchao, the Chinese Foreign Ministry's chief spokesman, said China's growing appetite for natural resources would not put it in conflict with other countries, and that it was actively pursuing alternatives to imported oil.
"At the moment we are trying to rely on ourselves for energy supply and at the same time trying to find clean, alternative energy resources," Liu said at the Reuters China Century Summit.
China gets more than 40 percent of its oil from abroad and most of that oil arrives by sea.
But Liu said that while China was concerned about the guaranteed supply of crude, its needs would not put it in conflict with other countries.
"We are ready to work with the United States, with the European Union, with our partners in the Middle East, for the safe supply of oil," he said.
China is already locked in a dispute with Japan over how to develop gas fields in a contested part of the East China Sea, but Liu said the conflict could be resolved.
"We have reached some agreement or consensus on this issue, that we will move towards the direction of common development of the resources of this area," he said.
"I think this issue will be resolved. We urge the Japanese side not to take any action that will complicate the issue."
'MUTUAL BENEFIT'
China has been criticised for investing in or aiding countries such as Sudan, under fire over its human rights record, often in return for access to oil and gas supplies, but Liu defended such trade.
"China needs oil and those countries need markets, so that is mutually beneficial," he said.
"At the same time, one of the purposes of China's diplomacy is to ensure a good international environment for China's development, so we work with partners all over the world for common interests."
China also did about $8 billion worth of business with Iran, which is in a standoff with the West over its nuclear programme, in the first seven months of the year, much of that in the form of oil imports.
It is also keen to boost its overland supplies of oil, working in particular with Russia to secure pipeline supplies.
Liu said that from this year, Russia would supply China with 15 million tonnes of oil by rail, but indicated Beijing was still convinced that Moscow would make good on a pledge to provide oil to China by building a pipeline.
"... By November 2008, the Russian side will provide, by means of the pipeline, 30 million tonnes of oil to China," he said.
China and Japan have been in a race for a long-promised crude pipeline from Russia to the Pacific Rim, but analysts say Moscow has been playing off Beijing and Tokyo for years, hoping to maximise investment and avoid over-dependence on China.
Source: Reuters
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