August 23, 2013

CHINA: UNOFFICIAL CONFESSIONS OF A SHOPAHOLIC!

Natural resources have always been the moot point for many a conflict and have tempted Kings and kingdoms into conflicts and wars since ages. A quick journey across our history would be enough to realise that the mightiest regimes have made planned moves to conquer natural resources – be it precious minerals, radioactive elements, energy resources, drugs, water or even human power. Talking about modern history, countries like US, UK and other Western powers have invaded nations in search of human slaves to natural gas.

Amidst all this, the bad news is that the era of cheap natural resources is definitely far gone. Natural resources and illegal occupation are very closely linked together; yet the correlation is largely ignored. The one time champion and monopolist nation of natural resources today is finding it expensive to explore its own natural wealth and is rather depending on imports. As per the US Geological Survey, 2011, United States imports 93 per cent of its antimony and 100 per cent of its bauxite and indium, 50 per cent of its lithium, and astonishingly, 100 percent of its rare earth metals. In just two decades, the tables seem to have turned completely. Two decades ago, China was the largest oil exporter, and today it’s one of the largest importers. So much so that China’s consumption of essential metals has doubled in the last 10 years and is expected to double again in the next few years. Today, against all the odds, China has made its presence unshakeable in most of the Latin American and African nations. I have, in some of my previous editorials, written on how China is completely into Africa in all economic and non-economic sectors. And why not! Latin America and Africa are precisely the two continents, which still have enough natural resources to meet the global demands for years to come, and to make any country controlling these resources economically powerful for years to come. For instance, in 2007, China bought a 15,000 feet mountain in Peru for a whopping $3 billion. Mount Toromocho, which is spread across 138 km, has proved to be one of the most productive copper mines in the world and is reaping a profit that is almost 2000 per cent of the initial investment.

China is not leaving out promising opportunities even outside these two continents. China has recently signed a “laptops for pork” deal with Canada which will allow China to become a prominent player in the meat industry in no time. Simultaneously, China is exploring opportunities to make it big in the fertilizer industry. China, a few years ago, mobilised its state-owned enterprises to bid for Potash Corp (POT), the Canadian fertilizer giant which is the largest producer of potash and third largest producer of phosphate and nitrogen.
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