By All Means Necessary: How China's Resource Quest is Changing the World

By All Means Necessary: How China's Resource Quest is Changing the World

Language: English

Pages: 304

ISBN: 0190229225

Format: PDF / Kindle (mobi) / ePub

In the past thirty years, China has transformed from an impoverished country where peasants comprised the largest portion of the populace to an economic power with an expanding middle class and more megacities than anywhere else on earth. This remarkable transformation has required, and will continue to demand, massive quantities of resources. Like every other major power in modern history, China is looking outward to find them.

In By All Means Necessary, Elizabeth C. Economy and Michael Levi explore the unrivaled expansion of the Chinese economy and the global effects of its meteoric growth. China is now engaged in a far-flung quest, hunting around the world for fuel, ores, water, and land for farming, and deploying whatever it needs in the economic, political, and military spheres to secure the resources it requires. Chinese traders and investors buy commodities, with consequences for economies, people, and the environment around the world. Meanwhile the Chinese military aspires to secure sea lanes, and Chinese diplomats struggle to protect the country's interests abroad. And just as surely as China's pursuit of natural resources is changing the world--restructuring markets, pushing up commodity prices, transforming resource-rich economies through investment and trade--it is also changing China itself. As Chinese corporations increasingly venture abroad, they must navigate various political regimes, participate in international markets, and adopt foreign standards and practices, which can lead to wide-reaching social and political ramifications at home.

Clear, authoritative, and provocative, By All Means Necessary is a sweeping account of where China's pursuit of raw materials may take the country in the coming years and what the consequences will be--not just for China, but for the whole world.

Red Book. Quotations from Chairman Mao Tse-tung













state-owned investment institution, this sovereign wealth fund manages a substantial part of China’s foreign exchange reserves. China Metallurgical Group Corporation (MCC): A large state-owned holding group specializing in natural resources development and metallurgical engineering. Its subsidiary Metallurgical Corporation of China Limited is listed on the Shanghai and Hong Kong stock exchanges. China National Agricultural Development Group Corporation (CNADC): A state-owned agricultural

consumers easily cut back on their use of aluminum (for which bauxite is a raw input) in the face of rising Chinese demand. This sort of “flexible” demand would prevent total world consumption from rising much and thereby keep prices restrained. But it turns out that demand for aluminum is highly unresponsive to prices (even more so than demand for copper), so this theory doesn’t work.28 Moreover, bauxite mining involves lead times similar to what is seen in other base metal mining, and it is

ambiguous. Japan and China, which have both ratified the UNCLOS, define their territorial claims in the East China Sea using UNCLOS measures but rely on different measures from the convention: in December 2012, China submitted a claim to the UN Commission on the Limits of Continental Shelf (a body established by UNCLOS) detailing how the Diaoyu/Senkaku islands are situated in the zone encompassed by China’s continental shelf, which it asserts is a “natural prolongation of China’s land

Soviet Union. But CNPC, the first Chinese company to enter Central Asia, did not make its first oil or gas field acquisition, Kazakhstan’s Aktobe field, until 1997. Since then, CNPC has been the most active Chinese oil company in the region. In 2005, it bought a 67 percent stake in PetroKazakhstan, a Canadian-based company focused on Kazakh oil, for $4.2 billion.70 That was followed in 2009 by the joint purchase (with KazMunaiGas) of MungistauMunaiGas for $2.6 billion.71 Sinopec, CNOOC, Sinochem,

(Washington, DC: Georgetown University Press, 2011); and Edward Wong, “China Quietly Extends Footprints into Central Asia, ” New York Times, January 2, 2011. 16. For example, David E. Sanger, “China’s Oil Needs Are High on U.S. Agenda, ” New York Times, April 19, 2006; Tania Branigan, “China’s Role on World Stage Is No Cause for Alarm, Says Barack Obama, ” Guardian, November 14, 2009; and “China Faces Charges of Colonialism in Africa-Asia Pacific, ” International Herald Tribune, January 28,

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