Fuel Crisis 101, Why RMB Revaluation is Good, Why Trucks Are Bad, and Metal Rock China

Monday, December 10, 2007 1:36
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The Game-Playing Behind China’s Fuel Crisis
I wrote a post entitled China is running out of Gas… Literally a while ago, and this week I found an excellent piece of analysis on the crisis. Written by Yingling Liu at the Worldwatch Institute, this pieces lays out what is happening behind the scenes, and what is really behind the gas shortage… profits. It is something that was covered at a high level in another post, but this is the best writeup I have seen on the crisis and the actors behind the scenes.

Update: Shanghai daily reports that Sinopec, PetroChina buy more oil to increase domestic supplyNow.. if they would stop reselling it offshore…

The value of the RMB does matter to the trade balance (1) & The value of the RMB does matter to the trade balance (2)
Michael Pettis puts together two excellent post that focus on why China should revalue the RMB, and let me give you a hint, it is not because the SED is coming to town. In his words:

The reason will not have to do so much with the impact of RMB appreciation on foreign appetite for Chinese goods, but rather because of the impact of a faster appreciation on China’s domestic monetary policy.

An excellent article, and I must admit that I think a one off revaluation is a bad idea, I have a few things to take away from the first read to consider…

Trucks Power China’s Economy, at a Suffocating Cost

A trip to any of the major industrial centers in China, will leave anyone’s lungs gasping for error, and where recent reports has show the effect ofCO2 emissions worldwide to outsourcing, this report from the NY Times really brings it to the street level. This is a must read article for really everyone worried about global warming, sustainability, and how that relates to trade. I once sat in the offices of a MNC in Shanghai where they told me they offered technologies that made diesel engines more efficient, only to learn that the diesel quality was so low it would rip the engine apart… sounds to me like there is a business opportunity somewhere!

China Top 5 – The Most Metal Things in China
Ok. this has NOTHING to do with doing business in China… and it is not something that really should be posted on All Roads, but it is just something that cannot be passed up. the top 5 metal things in China… Beavis and Butthead would be so proud

[youtube width=”425″ height=”335″]http://youtube.com/watch?v=XCshrL9aEXg[/youtube]

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