Everyone in the resource sector is well aware of the fact that China is the world’s largest consumer of metals with India and the other BRIC countries following closely behind. Over the past few years as the World Financial Crisis continues to wipe out many established financial institutions and companies around the globe; the Chinese government, flush with deep pockets containing billions of dollars worth of profit and debt from nations they also supply their goods to, have been quietly buying established US brands as well as purchasing controlling interests in mines and other resources outside their borders. All at fire-sale prices.
Few will disagree that China is well on it’s way to asserting it’s position on the world stage, but the larger long-term ramifications of the Chinese Government’s buying spree are obviously of great interest to investors in the resource sector even though the general public is largely unaware of how precarious the situation is geo-politically. As the world’s finite resources are being largely claimed by a foreign power with over a billion highly motivated residents, there will be signposts along the way which will serve to educate investors and the general public about the world that’s slowly coming into focus.
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