Oil trade btween china and saudi arabia Essay Example | Topics and Well Written Essays - 500 words

Oil trade btween china and saudi arabia - Essay Example China’s oil use improved from 4.7 million barrels per day to roughly 7 million barrels between 2000 and 2005. She derived Forty-three per cent of this oil from imports. China is the world’s second leading net importer of oil after the US, having surpassed Japan in 2008. Within the energy division, China today is capable of absorbing rising amounts of Saudi (heavy) oil in contrast to a decade ago. This is because it is importing huge quantities of oil as well as due to the alteration and expansion of its refining power. This has made Saudi Arabia to be China’s principal foreign source of oil. At the same time, it is making China the Kingdom’s foremost crude oil customer. The most striking development however is China’s economic growth, which arrived at over 9 percent per annum between the year 1978 and 2005 (Sfakianakis 2009). With slight intelligibility at the uppermost levels of government and discretion, Saudi Arabia and China are both mysterious states. Both states are overriding in their own regions. China is a key actor all through East Asia while Saudi Arabia is the motivating force behind the six-nation Gulf Cooperation Council (GCC). Both states are also frequently lone actors on the world phase, regional and worldwide coalitions as well as group discretion. This happens when they consider their own welfare not to be entirely allied with those of other states. This is owing to their ideological underpinnings in addition to their important planned positions (Matthews, 2010). There are prospects that China will supply Saudi Arabia with a growing quantity of weapons systems, probably together with nuclear technology due to this new tactical framework of oil trade. Saudi Arabia’s move to China as a main military weapon provider will come about due to two reasons: First, it will result from price contemplation, and secondly, it will result from anxiety