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Saturday, March 26, 2011

Lately, so many things happened around the world; the middle east crisis, flood in Australis, drought in China, earthquake and tsunami in Japan and Libyan crisis have brought uncertainties to the global economy. Due the crisis, commodities prices  have gone up drastically and oil prices surpassed USD100 mark.

What's transpired from these calamities and global crisis is that we are going to see increasing inflation in the world due to price increase. Food security will become an issue to deal in near future and this is critical as food is a neccessity to all. Food security crisis can generate instability as people will be under tremendous pressure to keep their financial in good order.

China is always proactive in dealing with such pressure. Various initiatives are being undertaken by the Government to ensure that the nation continuous to move forward with sustained eocnomic growth. Due to its fast growing nature that required ample supply of raw materials, China has stocked up these commodities and at the same time establish strong relationship with producers of commodities around the world. This is to make sure that supply of commodities like oil and gas, coal, iron ore and other minerals is secured for long term period.