Sino-Japanese synergy seen

Feng Zhaokui, China Daily, Asia News Network, Beijing

China and Japan enjoy broad prospects for energy cooperation despite the current heated energy disputes between the two economic giants.

The conflicts of interest between China and Japan in terms of energy have come sharply into focus recently.

Disputes about pipeline routes and energy development by China in the East China Sea have made headlines at home and in Japan -- and the resentment grows.

But that does not mean that China and Japan will confront each other over energy, as some people have predicted.

Sino-Japanese synergy over energy is a distinct possibility. There are common interests in the field of energy between China and Japan, which could induce energy cooperation.

Needlessly to say, there is fierce competition between the two for oil, but the backdrop of conflict should not mask the collaborative aspects of Sino-Japanese relations that are beneficial to both countries.

As buyers of the same oil, cooperation can avoid excessive competition that not only causes oil prices to spike, but triggers political friction.

There is a wide spectrum of aspects in which China and Japan can have a close affinity.

First, on the issue of energy development in the East China Sea, China and Japan have nothing to gain from a conflict and everything to lose.

The only way out is to shelve disputes and begin joint development. The jostling over energy intertwined with territorial disputes should be avoided.

Second, China and Japan share a common interest in protecting the sea-lanes through which crude oil is shipped.

More than half of China's imported oil is from the Middle East and about 80 percent of the imports are shipped through the Straits of Malacca -- as is the case for Japan.

The overlapping oil transport channel leaves room for cooperation, especially as severe security issues arise due to rampant attacks by pirates, which have caused heavy financial losses in the past.

Third, to cope with the disruption and volatility of the international energy market, China and Japan need to collaborate with other Asian countries to build up oil reserves.

Fourth, China and Japan are complementary when it comes to the coal trade.

Japan is the world's largest importer of coal and China is one of the most important coal suppliers. This provides strong inducement for cooperation.

Fifth, there is great potential for rapport in the field of gas and nuclear energy.

Natural gas and nuclear energy are both important alternative energies and there are plenty of joint development opportunities between China and Japan, especially in basic infrastructure construction for natural gas, nuclear power security and nuclear waste management.

Sixth, China is an ideal opportunity for Japan's advanced renewable resources and energy-saving technology, which are presently without markets.

China and Japan are at the energy crossroads between cooperation and competition.

To ease the tension and wrangling, steps have to be taken by the two governments.

To begin with, they should make efforts to improve political links, which are at a low ebb, as soon as possible.

Then, excessive energy competition should be avoided.

China and Japan should also hold multilateral dialogues with other to Asian countries to advance all-round cooperation in Asia by boosting energy collaboration. In this respect, the European Coal and Steel Community would be a good model to follow.

Furthermore, China should consider taking advantage of Japan's official development assistance to speed up the transfer of the latter's advanced technology. It would help preserve resources.

Regrettably, several Japanese politicians have been taking advantage of the energy dispute to stir nationalistic sentiment.

Ironically, Japanese factories set up in China, such as those to manufacture cars, are responsible for using a large percentage of China's energy.

They, on the one hand, openly admit that highly complementary economic relations are conducive to Japan's economic recovery but, on the other hand, exaggerate the energy supply problem being caused by China's rapid economic growth.