The Role of Chinese Regimes of Asian Infrastructure Investment Bank and the Belt and Road Initiative in the Transformation of Its Energy Diplomacy: Quest for Economic Sustainability

• Published in: Sustainability Vol. 14; no. 24; p. 16997
• Main Authors: Mahmood, Arfan, Khan, Mehran Idris, Ali, Shahid, Abbas, Zaheer, Khan, Nouman
• Format: Journal Article
• Language: English
• Published: Basel MDPI AG 01.12.2022
• Subjects: Alternative energy sources; Banks (Finance); Cooperation; Economic aspects; Economic research; Energy exports & imports; Energy industry; Energy resources; Finance; Foreign policy; Infrastructure; Initiatives; International economic relations; International trade; Investment banking; Investment banks; Natural gas; Regions; Socially responsible investments; Supplies; Sustainable development; United Kingdom; Kazakhstan; China; Russia; Middle East; Beijing China; Central Asia; Africa
• ISSN: 2071-1050; 2071-1050
• DOI: 10.3390/su142416997

This paper offers a critical analysis of how the new regimes in the Asian Infrastructure Investment Bank (AIIB) and the Belt and Road Initiative (BRI) of China complement its energy diplomacy to ensure economic sustainability driven by an uninterrupted supply of overseas energy. Recognising the centrality of energy in its foreign policy, China’s initiative in the AIIB and the BRI to complement its energy diplomacy is a subject of immense significance requiring extensive research. The present study investigates whether the transformations in China’s energy diplomacy caused primarily by these new regimes in the AIIB and the BRI are a step toward economic internationalisation or consistency of its years-old mercantilist practices. It adopts a well-defined analytical methodology by utilising the “case-based” approach of John Gerring. This article argues that the new global institutions of China successfully complement the country’s energy diplomacy, and its energy diplomacy towards Central Asia is predominantly neo-mercantilist. However, it shows a strong inclination to facilitate economic interdependence towards regions that carry some strategic weight in China’s national interests. In contrast, countries enriched in energy resources but isolated, with little strategic worth, are put under sheer dependency on China.