China On Track For 10% Increase In Oil Imports During 2006 -China Daily

[hatrack]

China's crude oil imports are expected to surge this year and exports will fall year-on-year as a result of market demand and trade policy adjustments, a leading industry analyst said yesterday. "Increased crude imports and decreased exports are results of accelerating local economic growth and higher dependence on import energy," explained Gong Jinshuang, a senior analyst at the Economic and Technology Research Institute of China National Petroleum Corp (CNPC).

'Trade policies discouraging oil products and crude oil exports are also crucial reasons behind the phenomenon," added Gong.

He estimated that this year's crude imports will stand at 144 million tons, a rise of more than 10 per cent year-on-year. Exports of crude oil for this year are expected to be 5.8 million tons. Meanwhile, a report from the Ministry of Commerce said that China's 2006 crude imports will total 140 million tons, with exports standing at 7.4 million tons.

Liang Shuhe, a senior official from the ministry, told Xinhua News Agency that robust gross domestic product (GDP) growth had forced China to depend more on imports because of limited domestic production.

EDIT

http://www.chinadaily.com.cn/bizchina/2006-12/28/content_769649.htm

[NickB79]

1. Huh, imagine that

Yesterday I was reading the business section of the Star Tribune here in Minneapolis, and they were predicted oil prices going down because, among other things, China's oil demand will decline because they will be trying to cool off their neck-breaking economic growth rate.

The thing is, China can't slow down it's economy without putting millions out of work, or leaving millions of new workers scrambling for fewer and fewer jobs. If that happens China will be facing massive protests and civil unrest.

At this point, it appears that China CAN'T reduce it's economic growth and subsequent oil consumption without risking fracturing their society.