Over the past 20 years, China's economy has grown by approximately 500% and personal incomes have quadrupled.
China is now a member of the World Trade Organization and has a strong vested interest in abiding by international business rules and the contract law governing major industrialized countries. China exports five times more to the U.S. than they import, contributing to the largest trade imbalance ever recorded between two countries. The U.S. is China's most important customer importing about as much from China as they do from Germany., France and Italy combined. It is important to emphasize that China and the U.S. are now commercially linked major partners in the world economy. More foreign investment went to China last year from all over the world than to the U.S. and the U.K. combined.
China is energy deficient and coalbed methane is expected to play a big part in China’s energy future. Natural gas consumption in China is rising rapidly, fueled by an unprecedented economic boom. According to the New York Times, if China in the future uses as much energy per capita as the U.S., it will amount to more energy than is currently produced worldwide (Nicholas Kristoff NY Times, June 3, 2003).
Far East Energy has accumulated a substantial land package in China with partners China United Coalbed Methane Co. (CUBCM), China National Petroleum Corporation (CNPC), and ConocoPhillips to exploit original gas-in-place (OGIP) estimated to be potentially 21.3 to 29.2 trillion cubic feet (Tcf). This estimate includes the OGIP estimated by NSAI for the Shouyang PSC.
The U.S. is the most important customer to China. The U.S. imports about as much from China as they do from Germany, France and Italy combined.