2008 Woodie Awards
A foreign influence on crude oil
America seeks to stem growing Chinese clout in Central Asia
Dane Schumann
Issue date: 10/13/05 Section: Opinion
- Page 1 of 1
Like many domestic issues, the debate over high crude oil prices has an international dynamic that leads to a controversial aspect of foreign policy.
That dynamic, not surprisingly, derives from two areas in the world that Americans and government officials have both historically and recently had their eyes on: China and the Middle East.
China's economy is growing at an impressive rate. As a result, the nation has been and will continue to be a major consumer of oil.
This was exemplified this summer when state-owned Chinese company CNOOC bid $3 billion higher than Chevron for a chance to buy out America's Unocal.
The federal government, for reasons of national security, blocked the deal.
Currently, China is attempting to negotiate the building of an oil pipeline that would span from the Middle East (mainly Iran) into mainland China.
Recent disputes between the U.N. Security Council and Iran over the Iranian nuclear program have drawn to a stalemate.
Both the Russians and Chinese, as permanent members of the council, will not support U.N. sanctions out of fears that Iranians will call off the deal.
In two years, China has opened up 10 free trade agreements with East Asian states and is determined to acquire more - particularly Australia, a long-time U.S. trading partner.
Much to the chagrin of the Americans, China is gaining influence in Asia at the cost of the United States.
What can America do in response to this?
Many things but the most effective and long-term solution stares at newspaper readers and news watchers daily: Iraq and Afghanistan.
To some it may either be disconcerting or a comfort to know that American foreign policy is not driven by altruism.
Nevertheless, the Iraq and Afghanistan conflicts have as much if not more to do with fighting terrorism as gaining influence in the Middle East and Central Asia.
Once a secure realm of influence is established within these countries, the United States will have a hand in the game against China and allow the it to keep the Chinese in check economically, diplomatically and possibly militarily.
With this in mind, the U.S. must stay the course in Iraq and Afghanistan.
A victory could secure the peace into the next generation on many different fronts with many different states.
That dynamic, not surprisingly, derives from two areas in the world that Americans and government officials have both historically and recently had their eyes on: China and the Middle East.
China's economy is growing at an impressive rate. As a result, the nation has been and will continue to be a major consumer of oil.
This was exemplified this summer when state-owned Chinese company CNOOC bid $3 billion higher than Chevron for a chance to buy out America's Unocal.
The federal government, for reasons of national security, blocked the deal.
Currently, China is attempting to negotiate the building of an oil pipeline that would span from the Middle East (mainly Iran) into mainland China.
Recent disputes between the U.N. Security Council and Iran over the Iranian nuclear program have drawn to a stalemate.
Both the Russians and Chinese, as permanent members of the council, will not support U.N. sanctions out of fears that Iranians will call off the deal.
In two years, China has opened up 10 free trade agreements with East Asian states and is determined to acquire more - particularly Australia, a long-time U.S. trading partner.
Much to the chagrin of the Americans, China is gaining influence in Asia at the cost of the United States.
What can America do in response to this?
Many things but the most effective and long-term solution stares at newspaper readers and news watchers daily: Iraq and Afghanistan.
To some it may either be disconcerting or a comfort to know that American foreign policy is not driven by altruism.
Nevertheless, the Iraq and Afghanistan conflicts have as much if not more to do with fighting terrorism as gaining influence in the Middle East and Central Asia.
Once a secure realm of influence is established within these countries, the United States will have a hand in the game against China and allow the it to keep the Chinese in check economically, diplomatically and possibly militarily.
With this in mind, the U.S. must stay the course in Iraq and Afghanistan.
A victory could secure the peace into the next generation on many different fronts with many different states.