Description: Chinese president Xi Jinping, has outlined a new national strategy for prioritizing renewable energy sources in order to safeguard the country’s energy security. His statements arrive on the precipice of a renewed energy crisis driven by the war in Iran and China’s growing renewable energy sector. Xi further stated that since coal is China’s primary energy resource, it will continue to play a supporting role, while hydropower, solar power, wind power as well as nuclear energy sources would be rapidly developed. China has successfully absorbed the recent energy crisis, by ensuring larger oil reserves and through low reliance on oil imports from the now closed Strait of Hormuz. Last year, China began construction on the largest dam on the Tibetan plateau, drawing criticism from India and Bangladesh over ecological disasters and water security. The construction of a solar thermal power plant by China General Nuclear Power Group also began a couple of days ago.
Impact: China’s independent energy stride represents a strategic priority for the world’s second largest economy and are primarily driven by national interests and long – term energy security strategies. Considering that energy security represents a national interest, no significant foreign investment opportunities are expected, since most of the projects would most likely be developed by state – owned enterprises. Large – scale projects, such as the dam in Tibet or the solar thermal power plant would likely position China ahead of the global energy curve since the country could shift towards renewable energy in the long – term period. The projects could also elevate regional tensions with rivals such as India or Bangladesh which are aiming to preserve their own energy sectors in a volatile global energy market. China’s rapidly developing renewable energy sector positions the country at a strategic advantage to become immune to global energy crises and forward its global economic and geostrategic ambitions.