2024, Oil Crises of the 1970s and the Transformation of International Order
Oil was a blessing for China. 2 With the help of Soviet technicians, the Chinese developed Karamay and Dushanzi oilfi elds in Xiangjiang in the 1950s, shattering the Western myth that there was no oil in China. Its oil industry took off with the 1959 discovery of Daqing ("Great Celebration") in Heilongjiang, the country's largest oilfi eld until it was overtaken by the off shore Bohai oilfi eld in 2021. Daqing was quickly followed by the other two major oilfi elds in the Northeast-Shengli ("Victory") in Shandong and Dagang ("Big Port") near Tianjin. Th ese oilfi elds turned up at a perfect time. Th e deterioration in Sino-Soviet relations in the late 1950s precipitated a near complete break of economic cooperation in the summer of 1960, when Moscow suddenly withdrew all Soviet technicians from China. Left to itself, the Chinese Communist Party (CCP), under Chairman Mao Zedong, doubled down on "self-reliance" as the cannon of China's economic development. While Soviet oil exports to China tailed off in the 1960s, Beijing imported oil equipment from the Eastern bloc (Hungary, Romania, East Germany, Albania, etc.) and the Western bloc (France, Italy, Japan, etc.) to develop the newly found oilfi elds, attaining self-suffi ciency in oil in the early 1960s. 4 Between the mid-1960s and the late 1970s, Chinese oil production increased more than tenfold, from 0.2 million bpd (barrels per day) to more than 2.1 million bpd. China seemed to be on its way to being an oil giant.