



On a hazy morning last September, 144 American and Chinese government officials and high-ranking oil executives filed into a vaulted meeting room in a cloistered campus in south Xi’an, a city famous for its terra-cotta warriors and lethal smog. The Communist Party built this compound, called the Shaanxi Guesthouse, in 1958. It was part of the lead-up to Chairman Mao’s Great Leap Forward, in which, to surpass the industrial achievements of the West, the government built steelworks, coal mines, power stations, and cement factories—displacing hundreds of thousands and clearcutting a tenth of China’s forests in the process. Despite its quaint name, the guesthouse is a cluster of immense concrete structures jutting out of expansive, manicured lawns and man-made lakes dotted with stone bridges and pagodas. It also featuresa karaoke lounge, spa, tennis stadium, shopping center, and beauty salon.

The guests at the compound that week were gearing up for another great leap: a push to export the United States’ fracking boom to China’s vast shale fields—and beyond. Attendees slid into black leather chairs behind glossy rosewood tables, facing a stage flanked by large projector screens. Chinese businessmen wore high-waist slacks with belts clasped over their bellies. I watched as one thumbed through business cards bearing the logos of Chevron, ConocoPhillips, Exxon Mobil, and Halliburton. Behind closed doors, a select group of Chinese and American officials and executives held a “senior VIP meeting.” Outside, a troop of People’s Liberation Army guards marched in tight formation.

The US-China Oil and Gas Industry Forum, sponsored by the US departments of