China’s Energy Sector and the Search for Structural Power

Abstract

Literature on China’s power lacks a structural power perspective regarding the energy sector. This study addresses this gap by posing the research question: Has the internationalisation of national energy companies enhanced China’s structural power in the energy sector? Using a qualitative case study, structural power is examined in relation to the international efforts of the five leading Chinese state-owned enterprises in China’s outward foreign direct investment. Underpinned by Pustovitovskij and Kremer’s operationalisation of structural power, the empirical analysis encompasses the most relevant energy subsectors. The findings reveal a sharp contrast between subsectors: while Chinese national oil and gas companies, as late entrants, face technological lag, China’s early, large-scale investments in power and renewables have secured market dominance and the ability to set global standards for green energy technologies. These advancements have directly enhanced China’s structural power. The adverse reactions of major competitors to China’s growing influence in energy geopolitics reinforce this conclusion.