In less than two decades, China has gone from being a petroleum exporter (1992) to becoming the world’s largest net oil importer (2013). How has China adapted to its increasing reliance on imported crude oil and petroleum products, and what strategies has China developed to strengthen energy security by reducing its exposure to potential supply disruptions and sudden price rises? The Chinese government has combined security and profit considerations to minimize the risk that increasing reliance on imported crude oil, exceedingly high oil prices and oil supply disruptions will negatively affect China’s economic growth and domestic stability. China’s leaders have also developed policies to manage and minimize the risk that the commercial interests of China’s national oil companies (NOCs) would undermine China’s diplomatic and national interests. These strategies and policies are best understood as hedging.