Due to a remarkable industrial growth in the past decades and an anticipatory bright future in this sector this country requires a large amount of energy. No wonder China has become a major player in this sector due to its ravenous demand. Considering the population explosion of this country and its enormous workforce China in 2010 has overtaken the United States to become the world's largest energy user.
In a report by McKinsey the energy consumption of China will account for 43% of the total GDP growth by 2020 as compared to 33% in 2010. As per the reports of the IEA (International Energy Agency) an advisor to 28 industrialized countries, China consumed 2.265 billion tones of oil equivalent of energy from sources such as coal, oil,Natural gas, hydro and nuclear power 4.4% more than USA. The same has been analyzed by BP PLC's statistical Review of World Energy.
As China's economy is anticipated to grow in the long term, more and more investment possibilities emerge in the form of products which are more accessible like the China ETF. ETF's are very apparent as the Fund Issuers publish the Fund assets and list them on a day to day basis. Though China straddles between the term of being associated as a developing or emerging economy and a world class economy, an investment in China ETF's can bring you a gain in terms of an exposure to China's Market and add to another feather in your cap as a great addition to ones Portfolio. This invest china energy sector acts as a hedge against the foreign investment risk.
It is stipulated in the Outline of China's 12th Five-Year Plan (2011-2015) for National Economic and Social Development that by 2015 the non-fossil energy will rise to11.4% in the national total primary consumption. The power consumption per unit of the GDP will drop by 16 % and CO2 emission per unit of GDP will definitely decrease by 17 % from 2010 onwards.As being one of the largest developing countries with a population of over 1.3 billion, China has committed that it must rely on itself to increase the power supply progressively to satisfy its enormous demands by focusing on the promotion of clean energy development and a strategic measure for new and renewable energy. The country is also expected to install 290 million kw hydropower generating capacity by 2015.
The government has stood out to encourage private investment into this sector as well to help regulate and strengthen the backbone of its infrastructure and overall economic growth.