Shanghai: China has surpassed the US as the world’s largest energy consumer with nearly 20% of world’s energy consumed by the People’s Republic.
“The trend will likely continue in the future,” Yong Teng, Principal of A.T.Kearney said at the JOC-organised Breakbulk event in Shanghai.
With the support of the government, the energy sector has experienced booming growth in the past few years. Like many industries in China, the fast development also comes with serious overcapacity problems.
“Overcapacity coupled with the potential slowing down of the domestic market are pushing local energy equipment companies to look overseas,” Yong Teng said.
“With good cost of value. Chinese equipment suppliers are putting pressure on MNCs,” he added.
However, the domestic power sector is still waiting for structural reforms, which were debated but not solved, Yong Teng warns. He points out the industry should develop an appropriate mechanism of pricing and achieve market-based differentiated pricing for customers. [14/03/13]
