China update

China update

9th March 2007

Saving energy, by reducing the extent and size of buildings, is a commendable objective. (It would also inevitably lead to a reduction in demand for cement and construction materials).

Will this however become yet another worthy aim which is abandoned by the regime, in the face of urban industrialisation and overpopulation? The auguries aren't good - for the government has already abandoned its overall energy saving targets.

India's main foreign customer for its (peoples') iron ore is China. Last week we reported that the Indian government was proposing to increase export duty in order to retain value within the country. That's provoked outrage from Chinese traders who've decided to boycott Indian suppliers following this line.

In fact, the largest Chinese iron contracts are with Australia and Brazil, and there's a likelihood that the Chinese and Indian governments will come to some accomodation to safeguard their respective trading interests. After all, they are signatories to a minerals cooperation treaty concluded two years ago.

China's biggest bauxite producer has sent a team to Guyana to oversee management of a major bauxite mine, purchased from Canada's Iamgold.