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y securityn Reduce China’s demand for hydrocarbons by: * Facilitate the transfer of nuclear technology to China? benefit US suppliers reduce China’s demand for oil imports。 investment expected to exceed $100 billion over next two decadesn Saudi Arabia: “strategic oil partnership” China’s leading supplier of crude oil5China’s new engagement in ME: beyond energyn Regular highlevel official visits between Beijing and the regionn Important exporter of manufactured goods and capital to the regionn ↓n China: a longterm customer for oil exports6China’s ‘Going Out’ Strategyn What is ‘going out’ strategy?n Why ‘going out’?n What’s the implications of the strategy?nDeeper engagement in ME: ME provides about 60% of China’s oil.7Middle Eastern Perspectives: Irann Fe strategic alliances with Chinan Benefits: n Int’l pressure over Iran nuclear activities:n China provides int’l political covern Premiums:n