China eats up the resources of the world - March 25, 2018

China eats up the resources of the world

China is growing really fast in several aspects, but the country’s resource hunger is surprisingly big. More than 50% of the world’s cement, nickel, coal, copper and steel is used in the country. We already knew how fast they produce millionaires and billionaires, but they are also leading in skyscrapers.

China is the biggest country by population with close to 1.4 billion citizens. It’s also the second biggest economy of them all. Still, compared to the global figures, they only have 19% and 15% of global population and GDP respectively. But China is resource hungry: it eats up more than the half of several commodities.

Endless hunger for commodities

Visual Capitalist made a very interesting chart that shows how much of several commodities is bought and used by China. Although the country “only” accounts for 15% of the global economy, it still needs more than half of global cement and nickel. It also needs half of the copper, coal and steel. They are hungry for aluminium, too.

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Having such a huge country also means lots of food. They use 47% of global pork production to feed their 1.4 billion population, not to mention rice and corn.

China grows upwards

This huge amount of resources is not only needed to fuel their export-oriented economy. China is also growing towards the sky, as they are building skyscrapers at a crazy rate. As Visual Capitalist put it: “it’s said that in China, a new skyscraper is built every five days”. They also mention that “last year, China completed 77 of the world’s 144 new supertall buildings, spread through 36 different Chinese cities”.

That’s why they need so much cement, steel and other metals. Although, several of those materials are needed for machinery and for the electronics and automotive industry just as well. It’s also important to see how much coal they use, though China is trying to become greener, and their coal consumption has already peaked in the past and started to fall.

Leaders in many things

China not only leads in skyscrapers and resource usage. They already have the biggest middle-class in the world, as they took over the lead from the US. They are also producing billionaires at a breath-taking rate: every 5 days someone becomes a billionaire in the Asian country. No wonder they have the most billionaires in the world.

The country is also ready to be the engine of globalisation, as Xi Jinping put it in Davos just last year. They have the money to invest around the globe and also the will. That’s especially important after the United States of America has stepped back – at least in words – from being a global leader.

Disclaimer: This analysis is for general information and is not a recommendation to sell or buy any instrument. Since every investment holds some risk, our main business policy is based on diversification to minimize threats and maximize profits. Innovative Securities’ Profit Max has a diversified portfolio, which contains liquid instruments. This way, our clients can maintain liquidity, while achieving their personal investment goals on the long term.