Energy Report of China (Research Paper Sample)

Energy Report of China
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1st page
Introduction about the Energy Sector of China
The recent growth of China is perfect and unmatchable. Apart from increasing political relationship and strategic alliance with other countries of the world, almost all the macroeconomic indicators are in the favor of the economic growth of the country. (Liu, Ma & Chang, 2012, p.56). The energy industry of China is the fastest growing industry sector in the region, with a very high installation capacity (Gao& Liu, 1997, p.35). In order to relieve the shortage of energy supply, China is strategizing to develop new sources of renewable energy that include solar, geothermal and tidal based power (Garnaut& Song, 2005, p.10). The energy mix of China includes Hydropower, oil, gas and Thermal. There was an exceptional growth of 7.2% in production envisaged in the energy sector of China by the year 2013 that contributed largely to the GDP of the country, and the level of consumption had grown by 6% in the same year (Data.worldbank.org, 2014, p.02).
The Agriculture & Forestry sector consumes the least energy and its energy consumption remained constant between 2008 and 2013, while the industries are consuming the most energy, as a report initiated by NEA, China (Theenergycollective.com, 2014, p.02). In 2013, the energy consumption capacity was on the highest place, where thermal energy showing a capacity of 69% of the total energy production, while it is 23% for the Hydro Capacity as revealed in the year 2013 (China.org.cn, 2014, p.04). China has experienced a remarkable growth of 1% from 2010 and 2011 respectively (Data.worldbank.org, 2014, p.12). It was nearly 10% in the year 2010, and moved to 11% in the year 2011
Since 2010, China's annual energy exports amount to roughly 30% of its GDP (Data.worldbank.org, 2014, p.06). Chinese export to GDP ratio in the year 2013 was 26%, showing a substantial amount of resilience of exports with the GDP of the country (Ma, 2007, p.12). The future trends of energy consumption and export in China is bright, and it is expecting that the export of China will increase further as compared to the current level, and will proportionate a high share to the GDP (Ma, Oxley & Gibson, 2008, p.23).
2nd Page
Environmental impact of China’s Energy Production and Consumption
In order to comply and fulfill the increasing demand of energy consumption, the country came up with effective solutions (Ma, Oxley & Gibson, 2009, p.10). Continuously increasing production and high-energy consumption is affecting the entire environment of the region, as well. China is a big country in terms of population and size, therefore having minor environmental issues, like pollution, non-lethal carbon emission and small of dirtiness in the country is acceptable, but the government has to make sure that the environmental factor would not be impacted heavily due to the high rate of consumption from the industries (Wei, Liu, Wu &Zou, 2011, p.12).
The energy demand is increasing because of new start-ups and industries (Wenying, Maosheng&Alun, 2006, p.12). China has a mixed and developed economy that welcomes innovation and foreign investment, which increased by 20% in the year 2014 as compared to the foreign direct investment (FDI) of 2013.On the other hand, growing industrialization increases the output of harmful substances (Yong, 2009, p.56). The government should play a vital role in overcoming all the environmental issues that are currently rising and will be creating in the near future. Selecting uninhabited areas for industries would be a better choice for the country to mitigate environmental and health problems and energy crisis of the country, which means to shift the industries of dessert areas in which the Carbon emission would not harm the health of the individuals heavily (Zhao &Sha, 2012, p.89). In this way, the country not only becomes able to maintain the environmental issues but it also enhances the economic consequences of the economy appropriately (Theenergycollective.com, 2014, p.12). The country is trying to flourish their renewable energy sector in the future to make it more perfect accordingly. Shifting the industries to dessert areas will certainly decrease the level of environmental issues of the country and will comply with the environmental scanning initiated by the United Nation (UN).
3rd Page
Impact of the Energy Sector on China’s Security
China has quickly risen in the top most ranks in the global demand of energy over the past few years (Zhao, 2000). China is known as the second largest oil consumer after the United States of America (USA) (Zhao, 2004, p.12). In order to meet the escalating oil demand, the country imported high quantities of crude oil from different parts of the world (Zhao, 2008, p.34). China's dependency on energy imports has increased exceptionally in the aftermath of the recent economic crisis, where many foreign companies expanded their operations in the country (Zhao &Sha, 2012, p.34).
Apart from the import, the country is also exporting energy, like Gas and electricity to different parts of the world. The export of Natural Gas was 113 Billion Cubic Feet in the year 2011 which decreased by 10.16% in the year 2012, but still it remained on a higher scale. On the other hand, China also has a great name in the export orientation of electricity which was 17.652 Billion Killowattshours in the year 2012 that increased by 5.6% in the year 2013 (eia.gov, 2014, p.01). China has extensive trade relations with Asian countries like India, Pakistan, Japan (Wei, Wu, Liu &Zou, 2011, p.45). Apart from that, the trade relation with western countries like Canada, United States and others are also very effective. However, insecurity of nuclear assets may become a political issue that may impact the trade relationship with the United States (Theenergycollective.com, 2014, p.56). Apart from the United States, the country is not having a good relationship with India, the 3rd biggest economy in the entire Asian region, due to the geo-political tension among both of these countries. The government of China has to assure the officials of the United States that all of their Nuclear weapons and assets are safe (Ma, Oxley & Gibson, 2008, p.45). With the help of this solution, the country can meet with its increasing energy demand.