IN FOCUS
By Avishka Ashok

China's energy sector: Looking beyond the shortage

Recent Developments
On 8 October, Chinese Premier Li Keqiang held a state council meeting to discuss the energy scarcity in the country, which has decelerated the Chinese economy and continues to alarm the government with the fast-approaching winter. The sudden shortage of electricity is caused due to the deficit in coal availability and China's transition from a coal-based energy sector to a renewable energy-dependent sector. The shift is essential for China to keep up with the international promises of reducing emissions from the energy industry between 2021-2025. Even though China has extended the time duration to achieve its climate goals, the energy crunch was expected by the Chinese government when they promised the net-zero transition out of the coal-powered economic structure.

The energy sector: an overview
Being the world's fastest economy has its perks as well as challenges. The rapid urbanization that took place in China has made the country dependent on constant energy supply to ensure continuity in its industrial and economic processes. To provide the factories and the residential areas with an uninterrupted energy supply, the Chinese economy depended heavily on coal until 2019. In 2019, 57.7 per cent of China's energy was derived from coal-powered plants. Given the pace of development in China, the demand for coal quadrupled in the last two decades; thereby accounting for 79.7 per cent of emissions. To avoid stagnation of the economic growth, the country began importing energy-producing commodities like coal, crude oil, petroleum and more. In less than a decade, China became the largest importer of coal and second-largest crude oil importing country.

The transition from coal to green energy
Knowing the limits of a coal-dependent economy, the Chinese administration realized the need to transition to renewable sources of energy. A white paper published by the government in 2012, urged the country to take serious steps towards reducing the dependency on coal plants. Gradually, China began investing in renewables and became the largest investor in clean energy by 2018. In 2019, China contributed 23 per cent to the global investment in renewable energy. As the country seeks to shift out of coal-powered plants, it started investing heavily on hydro-electric, solar and wind energy. At present, the country is home to the largest hydro-electric power station and 21 other hydroelectric plants. By 2015, China was already producing 20 per cent of its electricity needs from hydroelectricity. China's solar power capacity is also the highest in the world at 253 GW. Other than these means of energy, the country is also depending on natural gas and nuclear energy. By 2019, it derived 8.1 per cent of its energy from natural gas and is now home to 16 nuclear power plants which generate 51,000 megawatts of electricity.

The future of China's energy sector
Although there is a sharp shift from conventional sources of energy, China will continue to depend heavily on crude oil, coal and petroleum. China also possesses the largest shale gas reserves in the world. However, these resources are difficult to obtain as they are located 3,500 meters below sea level. China also faces a bigger challenge with transporting green energy to remote and distant regions. There is a need for upgrading the power system which will be an expensive task in itself. An expert from the London School of Economics said: "When we talk about the challenges, most people focus on the (electricity) grid. It's the first step in this long journey."

References
Lin Wang, Olivia Li, "China's Climate Goals, The 14th Five-Year Plan, and the Impact on Sustainable Business," Business for Social Responsibility

"China_International_Analysis," US Energy Information Administration, 4 November 2016

"China Price Index: China's Persistent Energy Crisis to Disrupt Agrochemical Production Into 2022," AgriBusiness Global, 14 October 2021

"How Is China's Energy Footprint Changing?," China Power Project,  

"The Largest Hydroelectric Power Stations in China," WorldAtlas, 12 July 2012

"China to add 55-65 GW of solar power capacity in 2021 -industry body," Reuters, 23 July 2021

IN BRIEF
By Dincy Adlakha and Keerthana Nambiar

INTERNAL

Xi Jinping on democracy as a "key tenet" of the Chinese political system
On 14 October, Chinese President Xi Jinping addressed the Central Conference on Work related to the people's congresses. "The people's congress system, made by Chinese people under the CPC leadership, is a great creation in the history of political systems as well as a brand-new system of great significance in the political history of both China and the world," Xi said. Xi emphasized that "democracy, a shared value of humanity, is a key tenet unswervingly upheld by the CPC and the Chinese people." The meeting took place as China is being mounted with pressure from the West and is stepping up efforts to defend its system. Xi's speech is an apparent response to the multiple sanctions imposed on Beijing by Washington on the growing concerns over human rights issues. ("Xi stresses enhancing whole-process people's democracy," The State Council The People's Republic of China, 14 October 2021; "Xi Jinping says China's 'democratic' political system is a 'great creation' that holds key to international success," South China Morning Post, 14 October 2021)

The Chinese astronauts' trio set for the Shenzhou-13
On 14 October, the China Manned Space Agency (CMSA) announced that three Chinese astronauts Zhai Zhigang, Wang Yaping, and Ye Guangfu will carry out the Shenzhou-13 spaceflight mission. Zhai will be the commander and Ye will be the first Chinese female astronaut to visit China's space station and carry out extravehicular activities. The team will stay in orbit for six months which will be a regular duration for Chinese astronauts to work and live in the space station. Shenzhou-13 trio underwent targeted training courses on rendezvous, spacewalks, research projects, docking tests, and transposition docking of the cargo craft captured and guided by the mechanical arm. The Shenzhou-13 manned spaceship is supposed to launch on 16 October 2021 from the Jiuquan Satellite Launch Center in northwest China. ("China unveils Shenzhou-13 crew for six-month space station mission," Xinhua Net, 14 October 2021)

ECONOMY
China pledges to further open Chinese market at Canton Fair opening
On 14 October, China opened its landmark trade fair, the Canton Fair, in Guangzhou. The fair is being conducted both, virtually and in-person. This is the 130th session of China's biggest import and export trade fair. President Xi Jinping sent a congratulatory letter and emphasized the importance of global cooperation at the joyous occasion. The inaugural address at the fair was delivered by Chinese Premier Li Keqiang. He vowed to make the Chinese market a fertile one for foreign investments. He emphasized reducing the number of sectors that are restricted from foreign investment. He also mentioned China's determination for investment liberalization and international support through RCEP and FTAs for the same. (Chi Jingyi, Xie Jun and Tao Mingyang, "Li pledges' fertile' Chinese market for foreign investment at Canton Fair opening," Global Times, 14 October 2021)

INTERNATIONAL
China-Bhutan signed a Three-Step Roadmap MoU
On 15 October, China and Bhutan signed a Memorandum of Understanding (MoU) on the Three-Step Roadmap to speed up the boundary talks. Wu Jianghao, the Assistant Minister of Foreign Affairs of China, and Lyonpo Tandi Dorji, the Foreign Minister of Bhutan announced that China and Bhutan will work to implement the MoU and commit to strengthening bilateral relations. According to the press release by Bhutan's Ministry of Foreign Affairs the roadmap is implemented "in a spirit of goodwill, understanding and accommodation." ("China, Bhutan sign MoU on a Three-Step Roadmap for expediting boundary talks," Global Times, 15 October 2021)

China-Russia joint naval drill in the Sea of Japan
On 14 October, China and Russia kicked off a joint naval drill for the first time in the Sea of Japan. Their joint statement says that "in light of rapid advances in the field of science and technology with dual-use capabilities, the risk of biological agents being used as weapons has increased." According to the report by Global Times, "the goal of the joint drill is to enhance the navies friendly, pragmatic cooperation, hone the capabilities to fight and enhance their capabilities to jointly deal with maritime security threats and safeguard regional peace and stability" by Zhang Junshe, a senior research fellow at PLA Naval Military Studies Research Institute. This is the first time China is participating with a 10,000 ton-class large destroyer in a drill abroad. ("China, Russia hold joint naval drill in Sea of Japan, display 'higher level of trust, capability'," Global Times, 14 October 2021)

The Mainichi reports "China warns against 'manipulation' of WHO virus probe"
On 14 October, Japanese newspaper The Mainichi reported on the warnings issued by China's Foreign Ministry against the "political manipulation" of the new WHO probe on coronavirus origins. The report cited the statement made by Chinese Foreign Ministry spokesperson Zhao Lijian who said that China would "continue to support and participate in global scientific tracing and firmly oppose any forms of political manipulation." Beijing has maintained the stance that it is being politically targeted and the scientific enquiries should be transparent. It has further shown doubts at US laboratories and demanded an investigation on the same. The Mainichi also mentioned the Chinese draconian measures to cut down COVID-19 cases. ("China warns against 'manipulation' of WHO virus probe," The Mainichi, 14 October 2021)

Microsoft shuts down LinkedIn operations in China citing increasing challenges
On 15 October, LinkedIn vice-president Mohak Shroff stated: "We're facing a significantly more challenging operating environment and greater compliance requirements in China." With this, Microsoft shut its social media network LinkedIn in China. Earlier this year, the site had blocked the profiles of certain journalists due to pressure from Chinese authorities. The journalists were working on projects related to the Chinese crackdown in Xinjiang among other fields. LinkedIn faced questioning over the matter. The firm has also announced that it shall release a non-social version of the app this year. InJobs shall only help in job search without any social posts feature. ("Microsoft shutting down LinkedIn in China," BBC, 15 October 2021)

China pushes initiative for green and digital BRi at UN meeting
On 14 October, Chinese President Xi Jinping addressed the opening ceremony of the UN Global Sustainable Transport Conference. In his speech, he announced China's plan to launch a Global Innovation and Knowledge Center for Sustainable Transport. China has increased the domestic transport network exponentially lately. It has also spread connectivity in important routes and regions through BRI. As the conference aimed to advance sustainable transport globally, China promoted its image as a contributor to the eco-friendly developer by substantiating the claims it made in the recent COP15 meeting. (Zhang Hongpei, "China to set up an innovation centre for global sustainable transport: Xi," Global Times, 14 October 2021)