Archive for October 2010


October 2, 2010

New cities and infrastructure is getting built in China. Fresh water, raw materials, and food will become an issue besides the energy. China is also demanding control on South China Sea. The US is claiming interest in that area as well. Furthermore the pressure is increasing in the US to pass a legislation to put duties on imports from China in order to compensate for China’s currency undervaluation. The House of Representatives will most likely pass this bill. The tension is going to go up. On top of this China and Russia have signed a contract on oil and gas deliveries from  Russia to China. China is demanding a lower price than what EU-nations are paying for energy. In my eyes the US and EU relationship should get more focus and value. The future will be pretty much a complicated one: EU must focus on energy and water which leads to think about more presence in the Arabic area and Nordic region. Even the tiny Denmark has claimed rights for oil and gas at North Pole region due to her majesty’s land of Greenland! All these developments will cost money and increase tension. At the end of the day the EU must start to build up an army, although this is now very unpopular and trend is the opposite one. If US is about to focus on more on Asia in military respect (the largest military base outside of the US is in construction now on the island of Guam – 3 hours flight away from Tokyo) and home market issues like the bill to change taxation on foreign income of US corporations and the demand of foreign companies to be registered in the US if they sell products or services in the US. The picture is not blurry but there are many open-ended questions now in the hands of Obama-administration.