China’s Mining Industry: An Open Opportunity for Investment in China

China’s mining industry is getting a revamp. The purpose is to entice foreign companies to invest in the sector because of the fact that China needs foreign investment to reach its economic goals.

China began to endeavor for a solid traction in the global economy in 1978 by reforming its economic regulations to have an even open, welcoming investment climate. From their introduction to the next four decades, these “reform and opening-up” policies have turned the country into a global powerhouse.

Being the second-largest world economy and having a population of 1.3 billion people, China is known for its extensive industrialization and infrastructure development program. The country is a world leader in metals and minerals’ consumption and 40% of the global resources mined end up in China.

The mineral reserves in China itself are vast and diverse. These mineral reserves comprise molybdenum, titanium, tungsten and rare earths’ global reserves.

According to the PwC reports that China’s mining industry will continue to be a lead player in the global mining sector despite some of the recent transitions resulting in a decreased demand for China’s raw commodities.

The same was confirmed by Mr. Yikang Liu, a former deputy general secretary of the China Mining Association and former vice-chairman of the Geological Society of China. He further said in his talk with the Investing News Network that even though China is finishing off the industrialization stage of its economic build-out, the nation’s economy will always have mining as a critical component.

He said:

“The total consumption for minerals will still be very large. Many minerals, such as iron ore, will soon cross the highest consumption point. In China’s economy, the important status of mining will not change.”