china resource boom to continue

Previous resource booms like the 70-80s were driven by consumer demand in countries like the US and the UK with populations the size of 250m and 50m respectively.

In comparison, China has a population of 1.3 billion.
China constructs:
- a city the size of Sydney every 6 weeks.
- (that's a lot of TVs, fridges, washing machines, etc)
- 2 x coal fired power stations every week.
- 2 x nuclear power units each year.
- millions of kms of cable every day.
- 1000s of km of roads every week.
- etc etc etc etc etc

Oh, but that was when growth was 12%. So maybe we should add a few days to the construction schedule of each new city now. Also, 95% of China's total output is consumed internally. They are not global consumers, they are self consumers (except for resources).

Now China has shut its hungry resource mouth, maybe for a month while the contracts are negotiated, and the markets are having you believe that its the death-knell for BHP and every other resource company.

But pretty soon China's belly will be rumbling with big hunger pains. When its mouth opens again soon, resource companies wont be able to keep up.

China slowdown? I suppose it depends on what you mean by slow.