Tuesday, August 31, 2010

Problem gridlocks a result of China's exploding economy

Americans stuck in traffic shouldn’t complain too loudly. They should consider themselves lucky they aren’t driving to work in China. About 10 days to the Chinese traffic jam, the gridlock extended for about 60 miles. Road construction in Beijing has caused a pileup of vehicles on a road between the capital and also the city of Zhangjiokou that is expected to continue at a crawl until the project is finished. The traffic jam moves at a glacial pace. Drivers make headway for about a kilometer a day. The road traffic jam has trapped some drivers as much as five days. China’s growing traffic jam problem can be traced to exploding need for coal and also the trucks to haul it, as well as the shipping required to meet the needs of a surging economy depending on consumption. Article resource – Epic Chinese traffic jams caused by exploding consumer demand by Personal Money Store.

Gridlocks an indicator regarding getting too hot economy

Drivers in china have learned to expect traffic jams. However, the current congestion is well-nigh intolerable, even by Chinese standards. The Wall Street Journal reports that road construction began the road traffic jam Aug. 14 in Chinese Heibei Province on a major highway leading to Beijing. Congestion worsened as some autos collided and others broke down. The traffic jam is expected to last as long as the construction project-about a month. Gridlock on this highway has become the norm as the capital city’s population of 20 million consumes more goods.

Consequences of demand for coal in China

Demand for coal to produce electricity for the world’s fastest-growing economy has been identified as a primary catalyst for the Chinese traffic jam phenomenon. Bloomberg reports that Inner Mongolia, a huge border province northwest of Beijing, surpassed Shanxi province last year to become China’s biggest coal supplier. Numerous coal mines In Shanxi were closed by the government following a string of deadly accidents. Shanxi used an established set of railway routes to transport its coal. A rail transport network up to the task of shipping Inner Mongolia’s growing coal production hasn’t yet been built. Suppliers are forced to ship the coal with trucks via Beijing to port cities, where it is shipped to power plants in southern China.

Supply and demand is an universal law

Dealing with the disappointment of the Chinese traffic jam took numerous forms. NPR reports that road rage has been absent as people killed time by sleeping, taking walks or playing cards and chess. Local villagers, zigzagging between autos on bikes, reaped a windfall selling noodles, box lunches and snacks. The Chinese traffic jam provided an old-fashioned capitalist lesson in supply and demand. Drivers complained about price-gouging by villagers who became their sole source for food and water. A bottle of water generally goes for 1 yuan, or 15 cents. Traffic jam vendors sold them for 10 yuan, or $ 1.50. Drivers were paying triple the price for instant noodles costing 3 yuan (45 cents) retail.

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