The Asian Century

from the February 19, 2008 eNews issue

Take a moment and make a mental list of all the items in your home which require electricity. That list could include a television, cell phone, computer, microwave, stereo, laundry machine, hairdryer, as well as various kitchen appliances and probably at least a dozen light bulbs. Think about how much energy you use in a single day. Now with that in mind, consider the following: according to some estimates the average Chinese household uses the equivalent of just one 100-watt light bulb per person per year. That statistic is staggering, especially when you consider the potential demand. The energy needs of China's 1.3 billion citizens are growing at tremendous rate. China's economy is booming, and it is estimated that China will triple its energy consumption between now and 2020.

More and more people are moving to the cities and China's middle-class is growing fast. By the year 2020, the "consumer class" in China will have grown from less than 100 million people, to more than 700 million. As the middle-class grows, so will the amount of disposable income and the demand for consumer electronic goods. In fact, if current trends continue, China's per capita income could match that of the United States by 2031.

Inflation in China has reached an 11 year high. So while China is clearly experiencing economic growing pains, it has showed no signs of slowing down. China's red hot economy has grown at an astounding rate of more than 10 percent for the past five years. However the economy isn't the only area where the Chinese are making strides.

Space Ambitions

In recent years the Chinese have launched an ambitious space program. This year China plans to send up more than 10 space missions. In 2003 China became the third nation to put a human in space. It's space program serves both a scientific and military purpose.

In January of last year China used a ballistic missile to successfully shoot down an old weather satellite. China is now the only nation, besides the US and Russia, that has demonstrated the capability to successfully target and destroy a satellite.

In October the Chinese launched a lunar orbiter that will make a three-dimensional survey of the moon's surface. The lunar orbiter will eventually be followed by two rover missions to investigate the moon's surface and collect rock samples. The Chinese are also reportedly working on a new rocket to launch their own space station as well as a mission to explore Mars.

China has transformed itself from an isolated communist nation into a growing superpower. If the 20th century was the American century, then the 21st century will undoubtedly be the Asian century. To learn more about this topic, listen to Chuck's briefing titled Kings of the East.