China’s Energy Push – Guest Blogger Kathy Heshelow – Continued

Here’s the continuation of my article yesterday on China’s energy picture.

One African official said back in 2006 that negotiating with the Chinese may take longer, but they can pressure China more because they are desperate for resources. Another official said, “The U.S. will talk to you about governance, about efficiency, about security, about the environment. 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, endure limitless criticism for ignoring human-rights issues and endure harsher business 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”, by Keith 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 China for resources in the short-term and long-term. China has made inroads to countries that supply us. China is using the opportunity of cash and foresight to put themselves in a position to succeed. They are clearly pouring money into the renewable energy world to position themselves at the top. And some international analysts believe China wishes to be the next world leader, and that energy plays a sizable part of it.

The World Bank reports that China has now overtaken Japan as the second 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 factor for the U.S. over the next several decades.