Energy issues in a growing china - a bottleneck for further economic growth ?

Essay by rubukazUniversity, Bachelor'sA+, December 2005

download word file, 7 pages 4.3

1.0 Introduction

25 years of economic reforms and growth unsurpassed in human history has made china the freight train economy of the world. China is not the biggest economy, but given time, there is no argument that china will be. However, in any given developing country there are several bottlenecks on important resources which can seriously hinder or even stagnate the economic development. In this report, the student will look at what issues the impending energy shortage china faces might mean to further development. How is the situation, what challenges does china face in energy production and consumption, and what might happen if these demands are not met?

This student will try to answer that question through looking at the general growth of china the last 25 years, look at GDP growth, and link this to the Energy consumption vs energy production ( and import) of china. By doing so, the student will try to answer the question

How does Chinas energy consumption correspond with its economic growing potential?

The seed of modern China was planted in December 1978; two years after Chairman Mao's death cleared the way for change.

VP Deng Xiaoping established his level of authority by starting a reform of the Chinese economy. More openness to market economy, more openness towards FDI, and more foreign influence in the Chinese markets.

Chinese statistics show the real GDP to grow at an annual rate of 7.0% -. 9,3% thus making China the largest growing economy in history. ( real GDP grew by appr.9,5% Q1 2005.)

During the last two decades the GDP increased 6.3 fold.

In the beginning of 1979 China, under the architecture of Deng Xiao Ping, launched a series of economic reforms. Among the first feeble attempts were price and ownership incentives to the rural farmers,