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A surge in demand for oil due to rapid economic growth and stagnation in domestic oil output has turned China into a net oil importer since 1993. Faced with increasing reliance on imports to meet its domestic needs, China now places a high priority on securing long-term stability of its oil supply in the next century. Hence a new oil development strategy focuses on boosting the domestic oil industry and exploiting overseas resources.In this regard, China has pursued an active "oil diplomacy" by signing international oil deals with a diverse range of nations from Central Asia, the Middle East, Africa and Latin America, in particular a series of deals worth US$6 billion with Kazakhstan, Iraq and Venezuela in June 1997. While the overseas ventures will no doubt facilitate China's integration with the world economy, such internationalisation of China's oil industry will also carry significant geoeconomic and geopolitical implications for oil-consuming countries.
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