Energy is closely related to national security
On March 11th at 3 p.m., the fourth plenary session of the 11th National People’s Congress was held at the Great Hall of the People in Beijing. During this session, State Councilor and Secretary-General of the State Council Huajian Min delivered a report on the reform plan for the State Council. A key focus of this institutional restructuring was enhancing energy management. Specifically, the establishment of the National Energy Commission and the National Energy Administration under the National Development and Reform Commission aimed to create a more coordinated and efficient energy governance system.
According to officials from the China Development Research Foundation, energy security is a critical national concern. As China's energy demand continues to rise, it has become the world’s second-largest energy consumer. In 2007, total energy consumption reached 2.65 billion tons of standard coal, up 7.8% from the previous year. Crude oil use increased by 6.3%, while natural gas consumption rose by 19.9%. Despite this, China's per capita energy resources remain far below the global average—only 11% for petroleum and less than 5% for natural gas. This has led to heavy reliance on imports, with oil imports reaching nearly 200 million tons and an import dependency rate of 50%.
With rising international oil prices, energy issues have become increasingly important. The "Eleventh Five-Year Plan" set a binding target: reducing energy consumption per unit of GDP by 20% by 2010 compared to 2005 levels. The revised "Energy Conservation Law," enacted in October 2007, emphasized energy conservation as a fundamental national policy, stating that energy efficiency should be prioritized. These reforms signal a strategic shift, elevating energy policy to a more central role in national planning.
The new energy management structure is expected to gain greater authority and improve the implementation of energy strategies. For the petroleum and chemical industry, which is highly energy-intensive, energy conservation is even more urgent. Among the top 1,000 energy-saving enterprises, 340 are in this sector, making up one-third of the total. Energy costs account for a large portion of production expenses, with high-energy products consuming 60–70% of their costs. Efforts in this sector have already shown progress: in the first three quarters of 2007, energy consumption per unit decreased across several key industries, including caustic soda, ethylene, crude oil processing, soda ash, and calcium carbide.
While these achievements are promising, meeting the targets of the "Eleventh Five-Year Plan" remains a challenge. Strengthening energy management will provide much-needed guidance and support. With continued collaboration between government and industry, China is well-positioned to address its energy challenges, ensure energy security, and protect national interests.
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