It's Payback Time: China's Increasing Energy Thirst Likely To Hurt Trade Dominance

Are China's days of world trade domination waning with its increasing dependence on imported energy? The Chinese language 21st Century Business Herald seems to think so. Who stands to gain? The United States, of course, which has seen its oil imports fall to levels not seen for 20 years.

Uncle Sam has cut his addiction to foreign oil to almost 6 million barrels a day, the lowest level since 1992, while, China has seens its daily oil imports rise to an average of 6.12 million. By the end of the year, the dragon is expected to be the top oil importer worldwide.

Why should Americans care? The changing energy trade dynamics are likely to put the United States at an economic advantage for once in a long time.

Explained the 21st Century Business Herald, according to the China Post: "China will spend more money to protect shipping lanes from the oil fields in the Middle East to its ports, which will increase China's oil prices. Meanwhile, the US's deficit will decrease as its expenditure on oil imports declines.The changes in the international energy structure may lead to a new round of labor distribution around the world."

In other words, the United States will be creating new jobs not shipping them overseas as energy costs in China continues to rise. Furthermore, you can outsource jobs in the domestic oil and gas industry to China. It's impossible. Those workers must be located near the resources.

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