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China's Energy Dilemma

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  • Haider A Khan

    (Department of Economics, University of Denver)

Abstract

PRC's energy dependence is growing and has become a major concern for both economic and national security policymakers in that country. The ambitious goal of modernization of the economy along the lines of the other newly industrialized economies(NIEs) of Asia has succeeded only too well, and it is difficult to reorient economic priorities. If examined rigorously, such an economic strategic assumption can be seen to entail the goal of creating further technological capabilities. In particular, China seems to be firmly committed to the creation of a largely self-sustaining innovation system as part of a knowledge-based economy of the future . Such innovation systems, called positive feedback loop innovation systems or POLIS have been created by advanced countries, and NIEs such as South Korea and Taiwan are proceeding to create these as well. But this will add to its energy burden and further dependence on the US as the power which controls the key sea lanes. Only a strategic reorientation to building a self-sustaining POLIS and appropriate regional cooperation institutions can lead to the way out of the current dilemma for China.

Suggested Citation

  • Haider A Khan, 2005. "China's Energy Dilemma," CIRJE F-Series CIRJE-F-385, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2005cf385
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    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2005/2005cf385.pdf
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    References listed on IDEAS

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    Cited by:

    1. Hengyun Ma & Les Oxley & John Gibson, 2009. "China’s Energy Situation and Its Implications in the New Millennium," Working Papers in Economics 09/01, University of Canterbury, Department of Economics and Finance.

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