Crude crisis could help China burnish green image

With crude prices incredibly volatile as the war in Iran continues, countries are already warning they may run out of oil. Pakistan and Bangladesh are introducing emergency measures as gas and diesel reserves come under pressure.

Both nations are closing down public buildings to reduce energy use and putting restrictions on fuel. In Bangladesh, the military are guarding oil depots and there are queues building up at gas stations in Vietnam, Pakistan and the Philippines as prices escalate.

The case for diversifying supplies potentially means being less vulnerable to what happens in conflicts in other parts of the world. And that argument might well push a change in strategy for countries that are struggling with supplies right now.

China is already the global leading green-tech manufacturing hub in solar panels, wind turbines and electric vehicles. It produces more than 70% of the world’s clean technology. So Beijing is in an ideal position to benefit from any growth in the green economy.

Significant overcapacity

As the United States walks away from its climate commitments and continues to act unilaterally on the international stage, China has an opportunity to step in and also enhance its reputation with other nations.

It can do this by continuing to export affordable green technologies, and finance low-carbon projects. Over time, it could even share its expertise with other countries. The goodwill that these initiatives generate could also help enhance its reputation and alliances.

Yet China’s leadership in green tech brings its own challenges. Strong state backing has fueled rapid expansion in sectors such as solar panels, electric vehicles and batteries, creating significant overcapacity and even losses.

And many Chinese manufacturers now depend on overseas sales to stay afloat, which has led to accusations of unfair competition and market flooding.

China needs to address these issues, otherwise it risks turning a potential soft-power asset into a source of friction even as the US cedes its role as a global climate leader.

To be an international green economic power, Beijing may also need to continue to work on its own environmental practices. China remains the world’s largest emitter of greenhouse gases, and was once called the “air pollution capital of the world.”

Armed forces

Yet from 2014, it has made strides in addressing the problem. There are indications that China’s carbon dioxide emission have been falling since 2024, and its large-scale forest reparation program has reduced sandstorms and land degradation across the country.

Since the mid-1990s, its armed forces have rapidly modernized. And its economy has been ranked as the world’s second largest since 2010. Yet, its willingness to use its trade and military influence to achieve its objectives has alarmed the West and its regional neighbors.

Beijing’s current strength lies in its hard power, which is the ability to get what it wants through economic and military might. But therein lies the problem. For a country that insists its rise is “peaceful,” this sort of aggression sends mixed signals.

If China wishes other countries to see its ascent as benign and not threatening, it will need to rely less on coercion and more on attraction or soft power. Enhancing its green image could be a crucial part in that process.

But beyond its iconic panda diplomacy – a practice of sending these giants on long-term loans to foreign zoos – Beijing’s other soft-power tools have produced mixed results.

Confucius Institutes, focusing on educational partnerships overseas, have faced political backlash in some countries. As for China’s flagship foreign policy blueprint, the Belt and Road Initiative, it has attracted both praise and criticism.

Economic partnerships

How Beijing responds to the growing oil crisis and its ability to grow green economic partnerships may give an indication of how it wants the rest of the world to see it in the future.

Chee Meng Tan is an Assistant Professor of Business Economics at University of Nottingham in the United Kingdom.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy of China Factor.