What will be the consequences of the world's most populated country's efforts to catch up economically with the West?
OIL IMPORTS RISE The speed of growth in China means crude oil imports to the country are expected to rise from an estimated 88 million tons in 2003 to 120 million metric tons this year. With GDP expected to rise by roughly 8%, China's total demand for crude oil is expected to reach 290 million tons this year. More than 80% of Chinas crude oil imports in 2003 came from the Middle East, Kazakhstan, Russia and Western Africa.
GOLD PRICES SOAR The price of gold in China has risen by a record 32 percent since 30 October 2002, when the Shanghai Gold Exchange started operation. At present, China is the world's third largest gold consumer and the fourth largest gold producer. Per capita lifetime consumption, however, is only 0.2 grams, compared with 1 gram in India and 30 grams in the United Arab Emirates.
RELENTLESS GROWTH IN ENERGY CONSUMPTION Energy consumption in China has been growing at an annual rate of at least 15 per cent over the past 17 months. The ratio of energy consumption to GDP growth in China is now two times higher than the global average. And Chinese oil refiner Sinopec has had to suspend diesel fuel exports to meet domestic demand.
CHINA IN 2003 Steel production rose by more than 16 per cent to 210 million tons Aluminium output increased by 15 per cent to more than 5 million tons 2 million, or 80 per cent, more passenger cars were built The country gained 46,000 kilometres of new roads, costing 350 billion yuan 11 per cent more than was spent on road building in 2002
Source: The Ecologist, March 2004