China’s energy industry is one of the fastest growing industries in the world. China had spent nearly $34.6 billion in 2009 on the renewable energy sector, which is almost twice as what US spent. China doesn’t want to rely on mid-west for energy needs and thus it is focusing on green energy. Besides, green industries are the fast way of becoming a tech leader in the world without undergoing decades of planning to catch-up.
In 2011 China announced a plan whereby the government would invest $15 billion in state-run projects – projects that will develop standards for hybrids and electric automobiles. Apart from this China’s industries are one of the main drivers of energy mergers. They struck nearly $50 billion deals outside the country. This is about 5% of the total industry.
China’s energy demands are exceeding its supplies, and this is making the country vulnerable to the current Middle East commotion. According to The International Energy Agency, China has to rely on imports for about 79% of its oil requirements by the year 2030.