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...Although it may not be evident at the local Wal-Mart yet, these forces may already be in play. Demand from China, along with other fast-growing emerging economies, has driven up the price of oil and a wide range of other commodities for the past several years. But what's really worrying many economists is the sudden appearance of relatively high inflation within China and the ripples that might cause abroad. Despite five interest-rate increases this year by China's central bank, the country's consumer price index has been stubbornly on the rise. In August, inflation climbed...

Author: /time Magazine | Title: Bloated Dragon | 10/11/2007 | See Source »

...revolt. At the end of September, China's central bank predicted consumer price rises would accelerate from an average 4.6% rate this year to 5% in 2008. Higher food costs continue to be a worry. As Chinese grow richer, they are eating more meat, which pushes up demand for grains such as soy and corn, says Jing Ulrich, head of China equities at JP Morgan in Hong Kong. Although Ulrich expects food prices to stabilize by year's end as the pork supply recovers, she says inflationary pressures resulting from rising meat consumption, the country's shrinking farmland and water...

Author: /time Magazine | Title: Bloated Dragon | 10/11/2007 | See Source »

...third of them destined for Asian carriers, according to Boeing, the No. 1 manufacturer of commercial jets. In China alone, domestic airlines could spend as much as $340 billion for 3,400 new aircraft - nearly quadrupling the current fleet of about 1,000 - by 2026. There's also booming demand for smaller, so-called regional jets like the ARJ21, aircraft with fewer than 150 seats flown on short-haul domestic routes. At least 1,600 regional jets could be purchased between now and 2025, according to Canadian aircraft maker Bombardier. "There's never been more demand than right now," says...

Author: /time Magazine | Title: Eyes on the Skies | 10/11/2007 | See Source »

...just the residents of Uong Bi who are caught in this dilemma. Throughout Vietnam - indeed, in most of the developing world - demand for cheap electricity is quickly rising. But as countries turn to abundant coal as the energy source of choice, many worry an environmental catastrophe is in the making. As the rest of the world struggles for solutions to global warming, Vietnam has built eight new coal-fired power plants in the past five years and plans to open at least a dozen more by 2012. Last year, Vietnam got only 19% of its power from coal, relying mostly...

Author: /time Magazine | Title: Power Puzzle | 10/11/2007 | See Source »

...exhausted - the 2,400-megawatt Son La dam now under construction is the last feasible major project, EVN spokesman Nguyen Duc Long says. Prices for natural gas, another fuel source for electrical generators, are up 15-20% over last year, and domestic gas reserves are too small to meet demand. Vietnam is planning nuclear power plants, but the first won't be ready until 2020. Coal, on the other hand, is readily available. The country's northern Red River delta has some 30 billion tons of coal reserves - enough to generate electricity for 100 years. "If we could have...

Author: /time Magazine | Title: Power Puzzle | 10/11/2007 | See Source »

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