China Institute of International Studies (CIIS)

The China Institute of International Studies (CIIS) is the Foreign Ministry’s think tank. According to the Institute, diversification is at the heart of China’s energy policy. Chinese NOCs are much more cautious given CNOOC’s inability to purchase Unocal. Xia Yishan, a top energy and Russia expert with CIIS (on the far left in photo), argued that CNOOC should have done its homework before attempting to purchase Unocal in 2005. He argued that if they had they would have realized that the timing was bad and their rival bidder, Chevron, was in an advantageous position. The price negotiations with Russia for natural gas are extremely sensitive and he expects the price to be negotiated up to the last hour before the first gas is delivered China. On the climate change issue, he remarked that China understands that there are real trade-offs between growth and the environment, and that China has a responsibility to the world on reducing emissions.