Christopher Len

The energy and mineral resource base of Southeast Asia is relatively modest by international standards. Nevertheless, Chinese energy and mining companies have been investing heavily in the region over recent years, in comparison with multinational companies and state-backed companies from other Asian countries. This paper applies a framework derived from the field of business studies to analyze why the scale of China’s engagement in Southeast Asia has become so great and how the motivations vary between the different energy and resource industries. The motivations for these activities reflect a mix of corporate and state objectives. Corporate objectives include securing energy or resource supply chains, increasing or diversifying their asset base, and enhancing their profits or market share. The motivations of the government range from straightforward support of the companies for the purpose of industrial strategy and security of resource supply, to development assistance and regional strategic positioning. The different motivations of the oil and gas, hydropower, and mining industries arise from the particular character of each market, both within China and globally. Southeast Asia has the twin advantages of geographic and apparent cultural proximity to China. Nevertheless, inexperience and a desire to catch up with their international peers have resulted in companies applying low social and environmental standards in some high profile projects. The subsequent disputes, together with the current low level of resource prices, may constrain the further growth of Chinese investment in the near future.

In recent years, the Chinese leadership has increasingly turned its attention towards the maritime domain. This article discusses Beijing's latest attempts to secure China's maritime energy supply chain across the Indian Ocean region and the South China Sea through which the majority of its seaborne energy imports transit. As China increasingly relies on the seaborne energy trade, Beijing has come to attach more importance to the security of the sea lines of communication (SLOCs) and has a growing strategic interest in ensuring unimpeded access in these two areas. In this paper, the author discusses Beijing's efforts in the context of China's maritime power aspirations, particularly the 21st Century Maritime Silk Road initiative which is promoted by the current Chinese President, Xi Jinping. The author argues that Beijing's latest maritime agenda will be hampered by the strategic distrust and political risks China faces in the Asian region.

The US ‘shale gas revolution’ has triggered a worldwide search for unconventional gas in different forms on other continents. Asia’s growing demand for energy and need to switch from coal to natural gas has made governments in this region determined to exploit these newly accessible resources, inspired by the US experience. However, in addition to geological differences, the above-ground conditions in Asian countries are quite different from those in the USA. The papers in this Special Issue analyse the investment frameworks and the consequent outlook for unconventional gas production in China, Indonesia and Vietnam. Our paper sets the context for these accounts by identifying some relevant insights from the experience of the USA and summarizes some of the key conclusions from the later papers. A number of common themes emerge from the case studies, for example: the limited capacity of government, the role of the national oil companies and other interested economic actors, complex approval procedures, poor coordination between different government agencies and between different levels of government, access to land, and inadequate infrastructure, as well as the inappropriate nature of the prevailing laws, regulations and contracts designed for the extraction of conventional hydrocarbons. Despite these commonalities, the specific nature of each potential constraint and their relative importance varies between each country and even across an individual country. One challenge arising from the nature of unconventional gas extraction that is common to all countries is the need for effective engagement with society.