China's Overseas Expansion Strategy

In the face of maturing domestic fields and voracious demand, Chinese oil companies are moving aggressively to snatch up foreign oil and gas projects, taking them to new parts of the Middle East, Asia, Africa and even Latin America. There appear to be two guiding principles in China's expansion efforts: first, a willingness to accept risk and, second, a willingness to invest in ways that fit Beijing's foreign policy priorities and extend its global influence. China's drive for expansion have fresh impetus as the United States sinks its roots into Iraq and expands its influence over the Middle East and Central Asia.