China On Sudan's Oil Diplomacy: Role Of Government And Enterprises Studied

Being China's first foray into the international oil market, The CNPC (China National Petroleum Corporation)-Sudan project, while achieving visible success, has also aroused considerable controversies all around the world. Especially when considering CNPC's state-owned property, there have witnessed plenty of conjectures as to the relations between its overseas practice and the governmental will. Based on the CNPC-Sudan case, this article aims to study the respective role of the CNPC and the Chinese government during the process of China's oil diplomacy with Sudan, and explore the influences as well as the reasons for this role pattern. In order to provide a sound explanation for the aforementioned questions, this article has tried to combine the theory of state-enterprise roles in national oil diplomacy in general and the history of China's oil diplomacy with Sudan specifically, pointing out the similarities and scrutinizing the differences.This article holds that while the Chinese government consults and cooperates closely with the CNPC in its oil diplomacy with Sudan just as other states do, the CNPC has actually played a far more essential and independent role than people normally imagine. This sort of role pattern does bring some benefits to China's energy diplomacy in the long run, but at the same time also jeopardizes China's international image and the overall diplomatic interests to some extent. The prerequisite for the existence of this role pattern lies in the compatibility of interests between the CNPC and the Chinese government, but some other important reasons also include the mechanical factors ranging from China's energy, overseas investment as well as the SOE (State-Owned Enterprise) management issue. Given the enduring significance of the energy/oil diplomacy for China in the future, it is wise for Chinese government to adjust the state-enterprise relations as soon as possible, establishing the leading role of the state and exercising effective supervision and control over the profit-oriented NOC (National Oil Company).