http://cupofcha.com/2007/12/13/how-big-a-problem-is-oil-for-china.html This is China Fri, 25 Jul 2008 14:26:50 +0000 http://wordpress.org/?v=2.5.1 http://cupofcha.com/2007/12/13/how-big-a-problem-is-oil-for-china.html#comment-386 Zhongguoist Thu, 17 Jan 2008 03:38:26 +0000 http://cupofcha.com/2007/12/13/how-big-a-problem-is-oil-for-china.html#comment-386 I think that oil is a huge problem already in China. Huge parts of the country still don't have access to railway lines so rely on oil to take their goods about, for transportation of people and for bringing the raw resources followed by the finished products to and away from the cities. In December I was in Yunnan for the 2nd time and I saw a queue about 30 trucks long outside a gas station, they had been waiting for a few days for petrol. Without oil, a huge part of the chinese economy will slow down not to mention bring cities to a standstill. The rising price of oil is already pushing up the cost of buses around China(when I take long-distance buses people tell me that less than a year ago things were like 10kuai cheaper at least) not to mention pushing up the prices of goods. I think that oil is a huge problem already in China. Huge parts of the country still don’t have access to railway lines so rely on oil to take their goods about, for transportation of people and for bringing the raw resources followed by the finished products to and away from the cities. In December I was in Yunnan for the 2nd time and I saw a queue about 30 trucks long outside a gas station, they had been waiting for a few days for petrol. Without oil, a huge part of the chinese economy will slow down not to mention bring cities to a standstill. The rising price of oil is already pushing up the cost of buses around China(when I take long-distance buses people tell me that less than a year ago things were like 10kuai cheaper at least) not to mention pushing up the prices of goods.

]]> http://cupofcha.com/2007/12/13/how-big-a-problem-is-oil-for-china.html#comment-242 Larry Thu, 13 Dec 2007 17:05:56 +0000 http://cupofcha.com/2007/12/13/how-big-a-problem-is-oil-for-china.html#comment-242 There is one more nice thing about price control: It makes people think that oil is still cheap, and they can continue to use oil wasting practices. This will ensure that oil consumption in China will continue to rise, and making the demand for goods from state owned oil companies to stay high, and strengthening their monopoly. It also ensure that the state owned oil companies have great reasons for asking for more subsidy, and the company executives can continue to benefit from the flow of money. There is one more nice thing about price control: It makes people think that oil is still cheap, and they can continue to use oil wasting practices. This will ensure that oil consumption in China will continue to rise, and making the demand for goods from state owned oil companies to stay high, and strengthening their monopoly. It also ensure that the state owned oil companies have great reasons for asking for more subsidy, and the company executives can continue to benefit from the flow of money.

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