Chinese Quest for Global Natural Resources
CHINA’S GLOBAL HUNT FOR NATURAL RESOURCES:
ITS RAMIFICATIONS FOR INDIA
INTRODUCTION
1. China is rapidly emerging as a major industrial power poses a complex challenge for global resource markets. Backed by the Chinese government, Chinese companies have been acquiring equity stakes in natural resource companies, extending loans to mining and petroleum investors, and writing long-term procurement contracts for oil and minerals. These activities have aroused concern that China might be locking up natural resource supplies, gaining preferential access to available output, and extending control over the world's extractive industries. China meanwhile has pursued an aggressive policy of acquiring equity stakes in new producers, in particular in Australia.
LAYOUT
2. The layout is as follows:-
(a) History
(b) Need for natural resources
(c) Chinese economic strategy
(d) Ramifications for India
(e) The reality of Chinese threat
History Leading To Present State
3. In 1949 China's economy was suffering from the debilitating effects of decades of warfare. Many mines and factories had been damaged or destroyed. 1949-52 was a period of recovery by its leaders. After 1978 the period of reforms and readjustment produced promising results. On the strength of these initial successes, the reform program was broadened, and the leadership under Deng Xiaoping frequently remarked that China's basic policy was "reform and opening," that is, reform of the economic system and opening to foreign trade.
NEED FOR NATURAL RESOURCES
What are Natural Resources?
4. There are various methods of categorizing natural resources, these include source of origin, stage of development, and by their renewability. On the basis of origin, resources may be divided into:
(f) Biotic – Biotic resources are obtained from the biosphere (living and organic material), such as forests and animals, and the materials that can be
ITS RAMIFICATIONS FOR INDIA
INTRODUCTION
1. China is rapidly emerging as a major industrial power poses a complex challenge for global resource markets. Backed by the Chinese government, Chinese companies have been acquiring equity stakes in natural resource companies, extending loans to mining and petroleum investors, and writing long-term procurement contracts for oil and minerals. These activities have aroused concern that China might be locking up natural resource supplies, gaining preferential access to available output, and extending control over the world's extractive industries. China meanwhile has pursued an aggressive policy of acquiring equity stakes in new producers, in particular in Australia.
LAYOUT
2. The layout is as follows:-
(a) History
(b) Need for natural resources
(c) Chinese economic strategy
(d) Ramifications for India
(e) The reality of Chinese threat
History Leading To Present State
3. In 1949 China's economy was suffering from the debilitating effects of decades of warfare. Many mines and factories had been damaged or destroyed. 1949-52 was a period of recovery by its leaders. After 1978 the period of reforms and readjustment produced promising results. On the strength of these initial successes, the reform program was broadened, and the leadership under Deng Xiaoping frequently remarked that China's basic policy was "reform and opening," that is, reform of the economic system and opening to foreign trade.
NEED FOR NATURAL RESOURCES
What are Natural Resources?
4. There are various methods of categorizing natural resources, these include source of origin, stage of development, and by their renewability. On the basis of origin, resources may be divided into:
(f) Biotic – Biotic resources are obtained from the biosphere (living and organic material), such as forests and animals, and the materials that can be