With more freshly printed money coming from ECB QE announced today - 60 Billion Euro per month until September 2016, slump in commodities will be over one day. China is using every opportunity to secure the supply of strategic commodities for its growth in the coming years. You simply cannot print any Oil, Gold, Copper or Lithium. Central Banks are fighting Deflation - never fight the Central Banks: they will win and Inflation will be driving commodities super cycle again.
We can see how China is positioning itself on the global chessboard in order to preserve the stability and economic growth in these challenging times. After announcement of $1 Trillion infrastructure development plans now comes the very logical step to secure commodities supply from Latin America to implement these plans.
Now we can put all China's world-wide acquisitions of the metal projects in the perspective. This huge stimulus plan for infrastructure development will need a secure supply of metals and China is already on the road to get it!
"Frik Els provides a very good insight into the Chinese deal culture and mining M&A particularly. Las Bambas deal is not only the very good indicator of the turning mining cycle, but also provides guidance for the smaller companies in China to go on The Hunt For Copper and other commodities. You can witness this approach in our particular case of Strategic Commodities with International Lithium and Ganfeng Lithium as well. Read More."
"A lot of investors are waiting for a change in Argentina this year. The political risk will become the value catalyst one day. China knows it too well and already is scooping up the best projects. We are already there with our projects and even partners from China! Read more."
(Kitco News) - China will continue to see slower economic growth but will not suffer a “hard landing,” said Li Keqiang, Premier of the People’s Republic of China in a keynote speech at the 45th Annual World Economic Forum in Davos, Switzerland.
Li made the comments a day after the Chinese government reported that its gross domestic product expanded by 7.4% for 2014, missing the target set earlier in the year for a growth rate of 7.5%. China’s economic growth is now at its lowest pace in 24 years.
|Photo courtesy of the Foreign and Commonwealth Office: Li Keqiang, Premier of the People’s Republic of China|
“The Chinese economy will face downward pressures in 2015,” Li said in a press released based on his speech during a special session of the Annual Meeting. “But the Chinese economy will not head for a hard landing.”
Li said weaker growth expectations are a reflection of a slowdown in the global economy. However, he is still expecting China to play an important role in the global marketplace, pointing out that a growth rate of 7% produces an annual increase of $800 billion at current price, and is still higher than growth rates five years ago.
He added that despite the weaker growth expectations the government is not planning on introducing any new stimulus efforts, instead the country will promote growth through its structural reforms.
China’s reforms include liberalizing the country’s services sectors, promoting mass entrepreneurship and innovation, and deepening its capital markets.
“We will move towards the path of reforms. This way we can shift gear without losing momentum and achieve medium- to high-speed growth, and medium- to high-level developments.”
He added that the government is preparing the nation to “embrace the new normal” as the country shifts away from its export led-economy to a more consumer-based one. He added that the government is planning to invest in targeted areas including health care, clean energy, and supporting small and medium-sized business to create employment, targeting specifically young people.
Also touching on the renminbi, Li said that more countries are now demanding the use of the Chinese currency to settle trades and investments. He added that although China is committed to creating an internationalized currency, it is going to be a long-term process.
Famed economist Nouriel Roubini, who is also attending the conference, said in a Reuters’ interview on Wednesday that he expects growth rates in China to be below 6% next year."