Globalization in the energy industry over the past decade: experience, challenges, and policy implications

Against the backdrop of profound adjustments in the global energy landscape and the accelerated transition toward low-carbon energy systems, China’s energy sector is shifting its globalization strategy from a phase dominated by scale expansion to a new stage characterized by greater systematization, institutionalization, and high-quality development. With the aim of summarizing practical experience and identifying key challenges, this paper systematically reviews and analyzes the development pathways and achievements of China’s energy sector globalization over the past decade, in alignment with the goals of safeguarding national energy security and building a new energy system. Employing a combination of literature review and practice-based analysis, the study examines China’s outward engagement from three dimensions: energy export trade, outward foreign direct investment, and participation in international energy governance. The results indicate that energy export trade has enhanced connectivity in international energy markets and promoted supply chain diversification through deepened cooperation with major energy-consuming countries; outward foreign direct investment, leveraging advantages in capital, technology, and management, has enabled global deployment in oil and gas resource development, energy infrastructure, and clean energy projects, thereby strengthening energy supply security and risk resilience; participation in international energy governance, through standards coordination and institutional mechanisms, has facilitated the integration of China’s energy technologies and rules into the global institutional framework and increased its institutional influence. Looking ahead to the 15th Five-Year Plan Period, the paper proposes policy measures to further advance high-level internationalization of China’s energy sector by strengthening mutually beneficial trade foundations, optimizing the layout of outward investment, and deepening cooperation in international institutions and governance, so as to support China’s high-quality energy development and international energy cooperation.