Effects of Chinese Mineral Strategies on the U.S. Minerals Industry

China’s burgeoning economy is responsible for a major share of recent world mineral consumption increases. In addition to factors traditionally recognized in market economies1 and factors unique to specific commodities, Chinese consumption now plays a major and increasingly important role in energy and mineral markets for many commodities, such as aluminum, copper, iron and steel, and oil. China has the world’s second largest economy after the United States. And its long-term importance to the minerals markets is even greater than indicated by its gross domestic product (GDP), which is currently less than two-thirds of that of the United States (Table 1). This is because China’s rising standard of living is accompanied by rapid industrialization and urbanization. Its consumption of mineral materials for infrastructure development for its very large population is significantly greater per capita than that of such developed economies as the United States, the European Union and Japan. In other words, China’s per capita production is rising at a rapid rate and will probably continue to do so for many years.