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ITC Portfolio
Part 3— 
China
PPUB 796 Internet and Public Policy: 
Technology or Tyranny? 
Rick Singer GMU Volegenau School of Engineering
rsinger@gmu.edu
China’s ITC Technology industry 
manufacture 25 % of components used in
Information Techology and Communication 
products for consumers, business, and 
industry.
In 2010 China overtook the USA  in manufactured output, 
energy use and car sales. According to the IMF, China will 
overtake America as the world's largest economy in 
purchasing-power parity by 2017. 
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
What’s the key concern for China ICT manufacturing?
China’s production of ITC technology products require ever 
increasing amounts of energy and raw materials.
ITC Manufacturing Lead To Car and Trucks Transport Growth
Contributing to the rise in Chinese liquid fuel consumption are 
the 22 million vehicles sold in China in 2013. 
http://europe.theoildrum.com
Personal and Business Motor Vehicle Ownership Has Exploded
China now has four times as many highways and almost five 
times as many cars than it had five years ago.
Vehicle Production Grows With ITC Equipment Manufacturing
              How long can this exponential growth continue?
What Powers China’s Growth in ITC Technology?
China’s energy consumption grew at a rate of slightly more 
than 8 % between 2001 and 2010.
What’s wrong that that? 
Sounds like a reasonable number for a growing economy….
www.bloomberg.com/news/2010-07-19/china-passes-u-s-as-biggest-energy-consumer-as-oil-
imports-jump-iea-says.html
Born in Shanghai, Albert Bartlett, Professor of Physics, 
University of Colorado called "sustainable growth" an 
oxymoron, since even modest annual percentage increases 
will inevitably equate to huge exponential growth over 
sustained periods of time.
 http://en.wikipedia.org/wiki/Albert_Allen_Bartlett
Powering China’s Growth in ITC Technology
Let’s apply the “Rule of 70” 
(The number of years it takes for a certain variable to double).
If the growth rate of the China is 10%, the rule of 70 predicts it 
would take 7 years (70/10) for China's real GDP to double.
Powering China’s 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
Powering China’s 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.
Powering China’s 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:?
Powering China’s Growth in ITC Technology
The intuitive answer is that the total amount of energy
consumed throughout China’s ten thousand of years of history
is far larger than the amount consumed over the past 9 years.
Powering China’s 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 China’s Growth,” in China’s Rise: Challenges
and Opportunities (Washington, DC: Peterson Institute for International Economics, 2009
www.piie.com/publications/chapters_preview/4174/07iie4174.pdf
Salient ICT Development Issues in China
Chongqing: China's Secret Metropolis Reflects Hypergrowth
Salient ICT Development Issues in China
Chongqing: China's Secret Metropolis Reflects Hypergrowth
Coal Electricity Powers China’s 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, “China’s Coal Future,” Technology Review, January 1, 2007Peter Fairley, “China’s Coal Future,” Technology Review, January 1, 2007
www.technologyreview.com/energy/18069/www.technologyreview.com/energy/18069/
Coal Electricity Powers China’s 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
China’s 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 soars”Winds of change blow through China as spending on renewable energy soars”
The Guardian, Monday 19 March 2012”The 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 /
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
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
China’s Low-Carbon Plan for ITC Factories
3% of China’s ITC industry is hydropowered with clean
electricity from Three Gorges Dam and Liujiaxia Dam.
China’s 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/ /
Nuclear Fission Powering China’s 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 Society“Nuclear 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/
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
Water Crisis Limits China Technology Growth
China’s reserves of
freshwater dropped 13
percent between 2000
and 2009.
https://www.chinadialogue.net/article/
4229-Zijin-s-poisoned-legacy
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
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
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
Financing China’s ITC Technology Growth
The USA is dependent on China’s 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.
Financing China’s 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.
“Look out below!” Unilateral Actions Ensuring
China’s ITC Technology Manufacturing Dominance
China’s 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/.
Financing China’s 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.
PPUB 796 Internet and Public Policy:
Technology or Tyranny?
Rick Singer GMU Volegenau School of Engineering
rsinger@gmu.edu
The movie “Network “(1976) Predicting ITC Enabled
International Trade With Former Cold War Rivals

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Singer ppub 796 ict portfolio -part3— china -140816