Chen Fengying, Director of the World Economy Institute of China's Institute of Contemporary International Relations
China saw a nation-wide diesel shortage at the end of 2010, resulting in long queues at gas stations around the country. Energy providers have asked the government to allow them to raise their prices as a result of increasing coal prices. In the face of high inflation rates, the government has been prudent about adjusting energy prices.
However, Chen Fengying,Chen Fengying, Director of the World Economy Institute of China's Institute of Contemporary International Relations, is still optimistic about China's energy market in 2011. "The energy supply risk is dropping," she said. She believes that demand for oil will actually decrease in 2011; China has been making stronger ties with oil-rich countries such as Russia and Brazil, allowing for a more stable market.
In addition to relying on traditional energy sources, China will also look at tapping new sources for energy in 2011. Nuclear and hydroelectric energy projects are part of China's 12th Five-Year Program, which will pour 5 trillion yuan ($746 billion) into these and other alternative energy projects.