China’s spectacular economic growth over the past decade has been accompanied by a major increase in energy consumption. In 2009, China consumed more energy than the United States for the first time according to a report from the International Energy Agency which was discussed in a recent Wall Street Journal article. China consumed 2.252 billion tons of oil equivalent last year which was 4 percent higher than U.S. consumption. The United States was the world’s largest energy user for over a century.
The Economist recently interviewed Fu Ying, China’s Ambassador to Britain. A number of interesting topics related to China’s export driven economy were discussed along with the government’s effort to provide fiscal stimulus to spur consumer demand. As I wrote last week in an article about Caijing magazine, American investors are well served to follow developments in China simply based on the size of the economy. View this article to see the video.
The Economist is running a series on “rebalancing” the global economy. This week, the article focuses on China. Here is an interesting videographic that provides a summary of The Economist’s views on reforms that China should consider.