Organisations die when they become irrelevant. That is what is happening to the G8 which, for reasons I can’t understand, continues to exclude China. When the G8 was formed in the 70s to bring together the leaders of the world’s main economic powers at a time of crisis and recession, China was tiny in global economic terms and focused on its own internal political struggles. Now it is at the heart of the global economy. Excluding the Chinese in favour of Canada or Italy is insulting.
If anyone doubts China’s economic importance lets just look at energy. According to the latest (and, as always, excellent) BP Statistical Review which has just been published, China is now by a clear margin the largest energy consumer in the world – with 21 per cent of total global demand in 2012 against 17 per cent in the US. China accounts for more than half of all global coal consumption, and almost 15 per cent of global oil imports. China’s use of natural gas is only just starting but the country already uses more than all but four countries worldwide.
This importance can only grow. The consensus of all the major forecasters is that China will dominate the growth in global energy needs for the next two decades. As US imports decline still further, China’s import need (which could be affected if local shale gas is developed successfully) will be one of the dominant influences on world prices.