Daryl Press and I have a new article out in the Spring issue of International Security. In the article, we argue that China’s policies of “energy mercantilism”  — often criticized as unnecessary and counterproductive to Chinese national interests — have been a sensible response that have improved China’s energy security.

Critics of energy mercantilist policies (which countries pursue to secure their access to key inputs) claim they are unnecessary because oil can be acquired on global markets. These critics, however, misunderstand the logic of energy mercantilism, which is rooted in the economics and business literatures on supply chain management. Firms and states are correct to worry about access to critical supplies under four conditions: imperfect contracting, supplier collusion, geographic concentration, and high risk of conflict. All of these conditions plague the oil industry. The energy mercantilist policies that critics deride are analogous to the strategies that firms adopt to protect their supply chains. China’s steps to ensure access to oil have enhanced its energy security and reduced U.S. coercive options toward Beijing. More broadly, the unfolding competition over energy access highlights the lingering power of mercantilism, even in this age of economic globalization and the apparent triumph of market liberalism.