The role of China in Japan's quest for energy security

This article examines the emergence of China as a new energy source for japan in the course of the latter's efforts to diversify its overseas sources away from the traditional major suppliers. A stable flow of Chinese oil and coal into Japan is shown to have been guaranteed through the long-term trade agreements whose smooth implementation, in turn, is found to have been ensured by Japanese funded (Resource Bank Loans) joint energy development ventures and economic assistance (Yen Credits) targeted on coal related infrastructural projects. Although China's share in Japan's total demand for energy imports has steadily grown over time, Japan continues to be overwhelmingly dependent on its traditional suppliers for both oil and coal. In the final analysis, China's energy export capacity will determine the country's future role in Japan's quest for energy security, suggesting better prospects for coal than oil.