China Expanding Global Energy & Raw Resource Deals- Preparing for 2010 Recovery? or Next Century?

February 20 2009 / by Garry Golden
Category: Economics   Year: General   Rating: 3 Hot


While the world stumbles through this economic recession, China is not sleeping, it is spending.

Its future success depends on very old world thinking about power and economic growth.

The world economy does not grow only because of digital bytes. Molecules, metals and minerals still matter!

China understands this reality and is taking full advantage of the economic downturn by paying low prices for access and control to much of the world's raw resources.

In the past month, China has made major moves on the global stage including:

- Potential $10 billion funding of Brazil's deepwater reserves via Petrobras
- Adding pressure to negotiate favorable iron ore prices (for steel production) with Rio Tinto, and potential $2 billion investment in Australia's Fortescue Metals Group
- $25 billion deal with Russia's Rosneft for crude oil access via a East Siberia-Pacific Ocean oil pipeline by 2011
- Talks with General Electric on carbon gas reduction technologies to address its growth in coal emissions
- A signed a memorandum  between Ukraine's Chernomornaftogaz and China National Offshore Oil Corporation (CNOOC) to build a gas pipeline toward the Odessa gas deposit off the Black Sea
- Negotiating Chinese vehicles to be built inside Mexico
- China is also addressing domestic water issues with an effort to decouple water use and GDP as it faces shortages in the years ahead.
- Working with Ecuador to provide funding on a new  hydroelectric plant as a diplomatic effort to gain access to other resources in the region.

Image Credit: Ashengrove  Flickr CC Licese Attribution No Derivative Works 2.0 Generic

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