Crux of Asia authors Zha Daojiong of China and Sunjoy Joshi of India joined co-editor Sean Mirski for a panel discussing the security implications of energy resource management in the region. The panelists treated not only the current trends in the energy sector, but also engaged with the possibilities for future developments.

  • A Contentious Order: Both Zha and Joshi indicated that the current global energy order, which Mirski described as resting on the back of American naval hegemony, might be unsustainable as their countries continue to gain clout and influence across the region.

  • Regulatory Risks: Joshi pointed out that every major energy crisis has been caused largely by domestic regulatory failures rather than by international turmoil. He noted that India’s extensive subsidies for energy, amounting to 2 percent of the country’s GDP, represent a major hurdle to India’s energy future.

  • Lack of Planning: Zha pointed out that China’s policy to date has been largely unarticulated, with no dedicated ministry for energy or even a strategic plan. He described China’s approach as being one that “walks on all different legs”—meaning that China has been content to switch between sources as circumstances have required.

  • A Private Future: Joshi and Zha both suggested that allowing more private, market-based mechanisms for resource allocation will be a near inevitability. They indicated that both countries should be looking for ways to allow the state to recede from its prominent role in the energy sector in the coming years.