For Immediate Release
China, Climate Change and US Dollars
The current global energy crisis is only going to get worse if two of the world's biggest consumers; China and the United States continue to look the other way
WASHINGTON - Economist and author Minqi Li gives a straightforward commentary on China's current role in today's global energy crisis and what the implications are for them and their largest trading partner, the United States.
Li describes how China is making efforts to clean up it's act on the climate change issue but maintains that it's current economic growth is fuelling an increasing dependence on oil and therefore diminishes any positive prospects at this point in time.
He explains that "China's oil consumption grows very, very rapidly, accounting for one third of the incremental oil consumption that has happened since about 2000. And so China's oil consumption right now is probably already 10% of the world's total oil consumption. " And they are not alone, Li claims that "the U.S. accounts for 25%" and as a result both have had a negative effect on the oil situation today.
Another crucial aspect brought up by Li is the interdependence of the U.S. economy and of their counterpart's, China. He makes a very interesting observation citing that "China is probably the major supporters behind the U.S. dollar right now." Due to China's extensive U.S. dollar holdings in their foreign exchange portfolio, the U.S.'s economy continues to be positively affected.