Chinese national oil companies(NOCs)have over the last few years captured the world's attention by their rapid business expansion around the world.It is claimed that their overseas activities are strongly supported by the Chinese government for the purpose of enhancing security of oil supply.However,it is commonly argued that this strategy is not sustainable because of the tendency to overbid for assets and because the NOCs are increasingly exposing themselves to reputational and political risks that they are not equipped to handle.Many analysts have predicted that once the security of supply panic is replaced by rational thinking,China will follow the example of its neighbour,Japan,and start to rely more on market mechanisms rather than on direct administrative means to secure its security of oil supply.
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