Monday, August 5, 2013

China's Energy Use Lags With Economy - RFA Michael Lelyveld

China's Energy Use Lags With Economy - RFA Michael Lelyveld analysis | ... energy data may only be adding to the guesswork about the economy in a year of transition. "It's hard to read from the energy numbers what that means in terms of real economic growth," said Mikkal Herberg, research director for energy security at the Seattle-based National Bureau of Asian Research. Conclusions about the true state of the economy have been clouded by uneven impacts of policy changes, overcapacity, price distortions, and half-implemented measures as China's new government tries to steer a more sustainable growth course.   ...   Cement production rose 9.7 percent in the first half, while production of flat glass jumped 10.8 percent, ...  after the NDRC announced a 15-percent rise in wholesale prices for non-residential use on June 28. On July 24, Xinhua reported that gas-fueled buses and taxis ground to a halt in the northern city of Harbin after local officials refused to approve corresponding retail price hikes, forcing filling stations to close. "This is a wildly uncoordinated process," said Herberg. "They still do not have bureaucratic instruments to coordinate these things. That's been a huge and consistent problem."