Here’s the continuation of my article yesterday on China’s energypicture.
One African official said back in 2006 that negotiating with theChinese may take longer, but they can pressure China more because theyare desperate for resources. Another official said, “The U.S. will talkto you about governance, about efficiency, about security, about theenvironment. The Chinese just ask ‘How do we procure this license?’”. (CNN Money, “China’s appetite for African oil grows”, by Vivienne Walt (Fortune). Feb 15, 2006).
As Keith Fitz-Gerald wrote, “…China will pay far more money, endurelimitless criticism for ignoring human-rights issues and endure harsherbusiness conditions than our companies can or will undertake. While U.S. firms must worry about sanctions, bad publicity or simply security,China worries about one thing, and one thing only – getting oil.” (Moneymorning. “How China is Beating the United States in the Global Oil Game”, byKeith Fitz-Gerald. October 16, 2008).
What Does this Mean for the United States?
What does it mean for the U.S.? Well, we may be competing with Chinafor resources in the short-term and long-term. China has made inroads to countries that supply us. China is using the opportunity of cash andforesight to put themselves in a position to succeed. They are clearlypouring money into the renewable energy world to position themselves atthe top. And some international analysts believe China wishes to be thenext world leader, and that energy plays a sizable part of it.
The World Bank reports that China has now overtaken Japan as thesecond largest economy. See the chart below, courtesy of World Bank.
The aggressiveness of China and their success in locking up resources and moving to become dominant in renewables may be a worrying factorfor the U.S. over the next several decades.