The Chinese are at it again. Like their gas and oil companies, their copper companies are on a global buying spree. This time again they are after the copper mines in Latin America.
The deals are at least a billion dollars worth each and every time. And the companies are state run companies that have official sanction for all kinds of malpractices all the world over.
The Wall Street Journal reports that in 2013 alone, the Chinese companies have signed up $ 1billion worth of copper mines in Peru while the comparable deal value in 2012 was $660 million.
The country imports 3.4 tons of copper while consuming 30% of the worlds’ Copper produce.
So what is interesting to note is that worldwide copper prices are softening and hence the assets that China is accumulating by way of owning copper mines are enormous.
And the dangerous part is that there are no new copper mines that are going to open up in the near future. Anything that becomes a monopoly, that too in the hands of China, is not good for the world.
With the U.S fighting its own internal wars between its Republicans and Democrats and Obama not really being able to exert the U.S.s “power” so to say, we are increasing heading towards a world that is being gobbled up in parts by China by way of its acquisition of the worlds’ fuel and mineral resources.
The Chinese are already in the Indian Ocean area exploring the ocean bed for resources. They are at loggerheads with almost every country in the South China Sea for its reserves of Hydro Carbons and have already gobbled up most of the African republics ( if you could call them so ) and thus ensured that they get oil at priority rates by helping every dictator with slush funds disguised as “payments for services rendered “.
The are in Sri Lanka having built a deep water port for them where they have been provided free boarding and lodging for their oil carrying ships.
This does not augur well for the stability of the world powers that too democratic ones that have to overcome every known opposition and stumbling block in their country to do at least a fraction of what China does overseas.
The only choice to check this is the U.S. But they are more concerned about overhearing what people talk about in their homes while leaving the real issues to address themselves.