| Summary: | China is an emerging economy country that is concerned about the
development of oil sector. This was done in order to achieve energy security and
economic security. Both of this security is interrelated. Therefore, the National Oil
Company of China are encouraged to run the scheme of going-out strategy. With
the scheme going out strategy, NOC China continues to expand actively in
various potential areas, including in Southeast Asia. Expansion strategy of the
Chinese government run in Southeast Asia include going out strategy, FDI and
soft power diplomacy. These three strategies are inter-related. With the concept of
going out strategy, the Chinese government encourages NOCs to expand globally,
including in Southeast Asia. NOCs are formed as political economy oriented at
the same time. NOC act to seek profit and keep running the government control to
attain national interests. Therefore, the Chinese government gave its support to the
NOC. Support is given in terms of special access financial, tax privileges and
diplomatic assistance. The government also runs soft power diplomacy as a
strategy to encourage the success of the oil expansion in Southeast Asia. Chinese
NOCs and governments mean to build good nation's brand as based on certain
principles. China wants to create a good reputation to strengthen mutually
beneficial cooperation without using hard power. Chinese NOCs seek to run ideas
Chinese soft power to shape the nation's brand is positive. Thus, Chinese NOC
can easily implemented entry mode scheme through FDI as a joint exploration.
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