Chapter 17 14. Resources and Raw Materials

The total value of China's mineral resources is about 33,763 billion euros, accounting for 12% of the world's total mineral resources, ranking third in the world. However, when this reserve is averaged to China's population of 1.4 billion, it ranks only 53rd.In addition, iron ore, manganese ore and copper ore, which are necessary for China's economic development, are not abundant. After 50 years of exploration, the status of China's mineral resources has become increasingly clear.Different resources are distributed across autonomous regions, provinces, and territories. China has 171 kinds of mineral resources and is one of the countries with the richest reserves of mineral resources in the world.

China mainly imports many of its raw material needs.But in terms of its current and future economic development, China needs more! China's main natural resources are coal, iron ore, petroleum, tin ore, lead ore, mercury, manganese ore, tungsten ore, molybdenum ore, magnetite, antimony ore, bauxite, vanadium ore, silver ore, uranium ore and copper Mine etc. In 2009, China ranked first in the world in terms of investment in electric power, energy and other enterprises, and ranked second in raw materials. For strategic reasons, China regards the West as its resource asset.The latter accounted for two-thirds of China's outbound deals.

Due to its increasing demand for raw materials, China's state-owned and private enterprises have disrupted the balance of international trade in the raw material market. China has become an important trading partner with Africa and Latin America.In this way, China defeated the Western monopoly companies and conducted many trades that were not good for the producing countries. At the same time, China has been criticized for making the world more competitive, thereby causing producers to pay higher prices. Despite the rising prices, in order to meet the needs of the country's development, China's purchases around the world are still going on.Chinese are very popular in producing countries in Africa and Latin America or other regions.

However, we should not be surprised to find growing tensions between seller countries and their once-traditional buyers! China buys a part of the market share and invests in the construction of factories in these countries, which were once the backyard of countries in the West and Europe.China is here as a new competitor, offering conditions, equipment and cheap goods, paid for by the former buyers of those European countries.As a result, those exporting countries began to behave harshly on their former partners, abandoning them or raising prices and terms. China is interested in all kinds of resources: copper in Chile, iron in Argentina, minerals in Australia and Canada, oil in Africa, nickel in Cuba, and so on.

Estimated years of world resource depletion 2012 Terbium 2018 hafnium 2021 Silver 2022 antimony 2023 palladium 2025 Gold, Zinc, Indium 2028 tin 2030 lead 2038 Tantalum 2039 Copper 2040 uranium 2048 Nickel 2050 Oil (Controversial) 2064 Platinum 2072 natural gas 2087 iron 2120 cobalt 2139 Aluminum 2158 coal While China is developing its own economy, it is encouraging its new partners, those African countries that were once dependent on some Western countries, South American countries, and other poor countries that export natural resources, to develop their economies together.

China helps them build infrastructure, schools, hospitals, roads, oil pipelines, railways, etc., while helping them promote economic development and transport resources. Demand in China is growing!China's imports of petroleum, ore, and various foodstuffs are increasing.It is the second-biggest oil consumer after the United States, and China touts Africa's oil producers, which supply 10 percent of the world's oil.China's oil investment in Venezuela is one example. In 2008, Latin America attracted 19 billion euros of investment from China, making it half of the total global investment.

Like China, India is stepping up its investments in Latin America.China increased copper ore imports by 28.5% within one month: in November 2010, China imported 350,000 tons of copper ore, and the market environment at this time is expected to be short of 370,000 tons of copper ore in the world in 2011. China is also very interested in the nickel ore market, while Cuba mainly exports nickel ore.China's Citigroup signed an agreement with Alcoa to co-found an aluminum company. Russia and China exchange their experience in fields such as oil, nuclear energy and military affairs.By extending oil pipelines to Beijing, Russia weaves its sales network outside Europe.

Chile's state-owned copper company Codelco has signed an agreement with a Chinese mining company worth 1.6 billion euros, providing the Chinese group with 55,000 tons of copper ore per year. Now, let's take a look at the "Australian Miracle".The country has an astonishingly rich mineral resources: iron ore (53.4%), coal (34.6%), gold (17.9%) and oil (10.9%). Australia also meets growing resource demands.By purchasing raw materials from here, China has also contributed to the rapid development of Australia... According to the statistics of Business Week magazine, in recent years, the per capita annual income of Australia has increased by 2,700 euros!

Africa is no exception!Is there also competition between India and China in this land?The answer is yes...China has invested billions of euros in African countries.Through cooperation with Africa, China has established a global partnership and enjoys preferential rights. In 2006, a China-Africa summit was organized in Beijing, which marked the official turning point of future China-Africa relations; 48 African countries and 41 heads of state or government were invited to attend!Many African countries are very willing to cooperate with China. From 2007 to 2008, the trade volume between China and Africa increased by 78.6 billion euros, an increase of 45%.In Nigeria, 75% of China's 4.5 billion euro investment is in the oil industry, and China has established 30 branches here.

If it is still difficult to measure the impact of China's investment in Africa and the development of China-Africa trade on Africa, then the report of the International Monetary Fund (IMF) shows that China has saved Africa from the fire during the financial crisis. Still according to the International Monetary Fund study, the economic growth of the African subcontinent was 5% and 5.5% in 2010 and 2011, respectively.Faced with the emergence of China in Africa, the United States, Germany and some other countries have become wary of this competition in their once back garden. However, many poor countries dream of achieving Chinese-style development to reduce poverty and stimulate economic growth, so it is normal for them to have a close relationship with China.China invests extensively around the world, weaving its global development network.Chinese investments, trade, and bilateral agreements are everywhere: Africa, Latin America, the United States, Myanmar, Greece, Spain, Italy, Russia, Brazil, Turkey, Portugal, South Korea, Cuba, Switzerland, France, and more.