Chinese Economy: China's Energy Worry

For a long time, the Chinese economy is growing at anmodel for its use of bicycles. This increase in demand
outstanding pace and I think no other economy sawfor oil coupled with the rising price of oil in the world
so much expansion in the last 10 years like the Chinesemarket in the last one decade for a various number of
economy. This growth has taken China into a newreasons. To meet the growing demand, China is going
level in the world politics. Now China is gradually beingafter securing supplies from oil fields from various
recognized as a huge economic power by rest of theparts of the world. At the same time, since Chinese
world. However, this growth means that Chineseeconomy is on a ride, China can afford to purchase oil
economy is consuming more and more fuels like oil,at a slightly higher price than other countries. The main
gas and coal. This matter is becoming a growingconcern for the policy makers in China now to find an
concern not just for the Chinese economy but for thealternate to oil as the global oil reserve is diminishing at
rest of the world too. As a result of the Iraq War anda fast pace.
destabilizing condition in Middle East the price of oil hasChina is actively pursuing the development of
remained a cause of concern for the last 2-3 yearsalternative sources of energy. China has a huge
and the growing demand for Chinese economy canreserve of coal and Chinese policy makers are now
only make matters worse.focusing on making the best use of its coal mines. A
Much of the time for the last one decade Chinesemassive initiative has been taken to extract gas from
GDP experienced nearly double digit growth rate. Thiscoal. If this project can become successful then many
way, Chinese economy has turned into the world'sChinese cars would run with gas instead of oil. Gas
fourth largest now. If the current trend continues afterextracted from coal will also work as source of
2-3 decades the Chinese economy will emerge as theenergy for the power plants. Another option is hydro
largest. This means that Chinese economy willelectricity and China is aggressively pushing it. Almost
consume more energy in future too. The rest of theall the major rivers of Asia have originated in China.
world is looking at China now to see what the countryHowever, this plan can face stiff resistance from other
is doing to address this issue. China has alreadycountries who are in downstream.
become the second largest importer of oil. This soundsChina's worry for energy only reminds us of the fact
to be astonishing because only 2 decades agothat we have become too much dependent on oil and
Chinese economy hardly needed any imported oil.if we do not give enough importance to finding
After the growth of Chinese GDP started at a doublealternative sources for energy then the future is very
digit the demand for oil increased and graduallybleak indeed not just for the Chinese economy but for
Chinese economy needed more and more imported oil.the world economy as a whole. The time has perhaps
Another reason for the increase in demand of oil is thecome for us to become desperate for developing
fact that the number of cars in the Chinese street isalternative sources of energy.
increasing in a huge pace. In the past, China was a role