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  • 1. ITCPortfolio Part3 China PPUB796InternetandPublicPolicy: TechnologyorTyranny? RickSingerGMUVolegenauSchoolofEngineering [email protected]

2. ChinasITCTechnologyindustry manufacture25%ofcomponentsusedin InformationTechologyandCommunication productsforconsumers,business,and industry. In2010ChinaovertooktheUSAinmanufacturedoutput, energyuseandcarsales.AccordingtotheIMF,Chinawill overtakeAmericaastheworld'slargesteconomyin purchasing-powerparityby2017. http://www.tradingeconomics.com/china/high-technology-exports-percent-of-manufactured-http://www.tradingeconomics.com/china/high-technology-exports-percent-of-manufactured- exports-wb-data.htmlexports-wb-data.html 3. WhatsthekeyconcernforChinaICTmanufacturing? ChinasproductionofITCtechnologyproductsrequireever increasingamountsofenergyandrawmaterials. 4. ITCManufacturingLeadToCarandTrucksTransportGrowth ContributingtotheriseinChineseliquidfuelconsumptionare the22millionvehiclessoldinChinain2013. http://europe.theoildrum.com 5. PersonalandBusinessMotorVehicleOwnershipHasExploded Chinanowhasfourtimesasmanyhighwaysandalmostfive timesasmanycarsthanithadfiveyearsago. 6. VehicleProductionGrowsWithITCEquipmentManufacturing Howlongcanthisexponentialgrowthcontinue? 7. WhatPowersChinasGrowthinITCTechnology? Chinasenergyconsumptiongrewatarateofslightlymore than8%between2001and2010. Whatswrongthatthat? Soundslikeareasonablenumberforagrowingeconomy. www.bloomberg.com/news/2010-07-19/china-passes-u-s-as-biggest-energy-consumer-as-oil- imports-jump-iea-says.html 8. BorninShanghai,AlbertBartlett,ProfessorofPhysics, UniversityofColoradocalled"sustainablegrowth"an oxymoron,sinceevenmodestannualpercentageincreases willinevitablyequatetohugeexponentialgrowthover sustainedperiodsoftime. http://en.wikipedia.org/wiki/Albert_Allen_Bartlett 9. PoweringChinasGrowthinITCTechnology LetsapplytheRuleof70 (Thenumberofyearsittakesforacertainvariabletodouble). IfthegrowthrateoftheChinais10%,theruleof70predictsit wouldtake7years(70/10)forChina'srealGDPtodouble. 10. Powering Chinas Growth in ITC Technology Using the Rule of 70 we discover that China is doubling the amount of energy it uses roughly every 9 years, as was confirmed by the International Energy Agency (IEA) in 2010 www.bloomberg.com/news/2010-07-19/china-passes-u-s-as-biggest-energy-consumer-as- oil-imports-jump-iea-says.html 11. Powering Chinas Growth in ITC Technology After only 9 years of 8 % growth, China is using not just a little more energy, but 100% more. China now has more than 750 coal-fired electricity plants. After 9 more years of 8% growth China will need over 1500. 12. Powering Chinas Growth in ITC Technology A: Amount of energy China consumer in the past 9 years? B: Amount of energy China consumed previously from the dawn of civilization? Time for pop quiz: Which is larger:? 13. Powering Chinas Growth in ITC Technology The intuitive answer is that the total amount of energy consumed throughout Chinas ten thousand of years of history is far larger than the amount consumed over the past 9 years. 14. Powering Chinas Growth in ITC Technology The correct answer is that the most recent doubling is larger than all the prior doublings put together. C. Bergsten and others, Energy Implications of Chinas Growth, in Chinas Rise: Challenges and Opportunities (Washington, DC: Peterson Institute for International Economics, 2009 www.piie.com/publications/chapters_preview/4174/07iie4174.pdf 15. Salient ICT Development Issues in China Chongqing: China's Secret Metropolis Reflects Hypergrowth 16. Salient ICT Development Issues in China Chongqing: China's Secret Metropolis Reflects Hypergrowth 17. Coal Electricity Powers Chinas ITC Factories In 2012, China completed the construction and put on line the equivalent of one new 1 gigawatt coal-fired plant every week. Peter Fairley, Chinas Coal Future, Technology Review, January 1, 2007Peter Fairley, Chinas Coal Future, Technology Review, January 1, 2007 www.technologyreview.com/energy/18069/www.technologyreview.com/energy/18069/ 18. Coal Electricity Powers Chinas ITC Factories In 2013 China consumed more than 55% of all the coal used by all of the industrialized nations in the world Euan Mearns, The Chinese Coal Monster, Energy Bulletin, July 12, 2010.Euan Mearns, The Chinese Coal Monster, Energy Bulletin, July 12, 2010. http://http:// www.energybulletin.net/node/53411www.energybulletin.net/node/53411 19. Chinas Low-Carbon Plan for ITC Factories Wind farms in Xinjiang power ITC production with sustainable energy supplies. Ambitious, clean, carbon reducing power plants are going on line. Winds of change blow through China as spending on renewable energy soarsWinds of change blow through China as spending on renewable energy soars The Guardian, Monday 19 March 2012The Guardian, Monday 19 March 2012 http://www.theguardian.com/world/2012/mar/19/china-windfarms-renewable-http://www.theguardian.com/world/2012/mar/19/china-windfarms-renewable- energy /energy / 20. Geothermal Power for Chinese ITC Factories An ambitious 24 MW Geothermal station in Yangbajain powers ITC production with hydrocarbon and emission-free energy supplies for regional ITC manufacturing plants. China News CN: China's largest geothermal power station to increaseChina News CN: China's largest geothermal power station to increase production 2010-04-06production 2010-04-06 http://news.xinhuanet.com/english/2010-04/06/content_13307379.htmhttp://news.xinhuanet.com/english/2010-04/06/content_13307379.htm 21. China Solar Power Generation for ITC Factories In 2013, China installed 11.3 GW of solar capacity, 37% of global solar growth. PV power generation in Hong Kong complements the wind farms hundreds of miles away on the mainland. . Report from the China New Energy Chamber of Commerce, April, 2013 http://www.fool.com/investing/general/2014/08/16/is-chinas-solar-boom-about-http://www.fool.com/investing/general/2014/08/16/is-chinas-solar-boom-about- to-fall-off-a-cliff.aspxto-fall-off-a-cliff.aspx 22. Chinas Low-Carbon Plan for ITC Factories 3% of Chinas ITC industry is hydropowered with clean electricity from Three Gorges Dam and Liujiaxia Dam. Chinas hydro-power capacity exceeds Brazil, the USA and Canada combined Renewables 2012 Global Status Report http://www.ren21.net/ren21activities/globalstatusreport.aspxhttp://www.ren21.net/ren21activities/globalstatusreport.aspx http://www.ecology.com/2013/03/28/hydro-power-in-china/ /http://www.ecology.com/2013/03/28/hydro-power-in-china/ / 23. Nuclear Fission Powering Chinas ITC Factories Of a worldwide total of 61 nuclear plants under construction in 16 countries world wide, China is building more than half. 33 Chinese nuclear power plants will be on line by 2030. Plans For New Reactors Worldwide, World Nuclear Association, August 2010.Plans For New Reactors Worldwide, World Nuclear Association, August 2010. Nuclear Power Plants, World-Wide, European Nuclear SocietyNuclear Power Plants, World-Wide, European Nuclear Society http:// www.world-nuclear.org/info/inf17.htmlhttp:// www.world-nuclear.org/info/inf17.html http://nuclear.duke-energy.com/2012/07/10/nuclear-energy-made-in-china/http://nuclear.duke-energy.com/2012/07/10/nuclear-energy-made-in-china/ 24. Resource Depletion Limits China Technology Growth China will have to drill deeper wells and built desalination plants to produce water for manufacturing. China will face a shortage of ITC raw materials copper, lithium and rare earth minerals. Minerals extracted from ever-more-difficult locations generates separation process 1,000:1 waste products. https://www.chinadialogue.net/article/4229-Zijin-s-poisoned-legacy 25. Water Crisis Limits China Technology Growth Chinas reserves of freshwater dropped 13 percent between 2000 and 2009. https://www.chinadialogue.net/article/ 4229-Zijin-s-poisoned-legacy 26. Water Crisis Limits China Technology Growth The ambitious and unprecedented South-North Water Transfer Project will divert water from the more southerly Yangtze to the basin of the northerly Yellow River requiring hundreds of new treatment plants to make it non-toxic for human or wild-life consumption. https://www.chinadialogue.net/article/4229-Zijin-s-poisoned-legacy 27. Water Crisis Limits China Technology Growth The aquifers of northern China have been drained by mining, oil drilling and manufacturing. https://www.chinadialogue.net/article/4229-Zijin-s-poisoned-legacy 28. Water Crisis Limits China Technology Growth The Yellow River is too polluted for human consumption. https://www.chinadialogue.net/a rticle/4229-Zijin-s-poisoned- legacy 29. Financing Chinas ITC Technology Growth The USA is dependent on Chinas cheap labor force to manufacture the ITC productivity tools necessary for the service sector economy jobs and conveniences we take for granted. China produces actual things, while the economy of the USA has become overly dependent on financial services. 30. Financing Chinas ITC Technology Growth China owns more than 26 % of all foreign-held U.S. Treasury securities $1.2 trillion (8 % total) US debt, much larger than the amount owned by all American households combined. "Major Foreign Holders of Treasury Securities". U.S. Department of Treasury. Retrieved July 19, 2011. 31. Look out below! Unilateral Actions Ensuring Chinas ITC Technology Manufacturing Dominance Chinas centralized mechanisms of economic control and limited transparency could further stimulate growth by devaluing its currency by expanding purchases of US Treasuries. " http://www.forbes.com/sites/jamescahn/2014/06/12/chinas-turn-for-a-debt-crisis- keep-your-eyes-open-for-the-unexpected/. 32. Financing Chinas ITC Technology Growth The USA is dependent on China cheap-labor to manufacture the ITC productivity tools necessary for the service sector economy jobs and conveniences we take for granted. China owns more than 26 % of all foreign-held U.S. Treasury securities $1.2 trillion (8 % total) US debt, much larger than the amount owned by all American households combined. China could devalue its currency relatively easily by expanding its purchases of US Treasuries. "Major Foreign Holders of Treasury Securities". U.S. Department of Treasury. Retrieved July 19, 2011. 33. PPUB 796 Internet and Public Policy: Technology or Tyranny? Rick Singer GMU Volegenau School of Engineering [email protected] The movie Network (1976) Predicting ITC Enabled International Trade With Former Cold War Rivals