A thirsty dragon: China's oil diplomacy

China's economic growth needs to be adequately and constantly nurtured by energy supply. In parallel with its economic development, China’s presence in world energy markets has increased as rapidly as its energy needs, especially since the turn of the millennium. Chinese growth, outstripping that of all other major countries, has sharply increased its energy needs, and has placed the country in a central position in the global energy market. This chapter attempts to provide an overview of China’s external initiatives for satisfying its domestic thirst for oil. The analysis begins by discussing the tremendous importance oil has for China, in consideration of its vital significance in sustaining the economic growth and the modernization of this gigantic nation. It then discusses the recent development of oil strategy in China, with a particular focus on the “going out” strategy. The chapter continues by discussing China’s policy of diversification, developed over the past two decades in an effort to secure a stable and adequate supply of oil, the main difficulties China has encountered in realizing this goal, and how it has attempted to overcome them. The chapter concludes with an analysis of the impact that energy security has had on China’s foreign policy and a projection of future developments.