WORLD SIGNIFICANCE China is one of the world's rich mineral areas fully capable of supporting a modern first-rank industrial economy. During 1977, PRC strengthened its position as a leading mineral producer. Its relative. importance should grow significantly in the decade ahead, judging from the resource potential and the many developments already underway. As befits a large country with a huge population, China produces a great variety of minerals and metals-many outstanding by world standards. If all minerals were added together in terms of output value, PRC would rank with the world's first five for crude minerals and only a little behind in terms of total value added for minerals and metals. How China compares with major world producers of minerals and metals is shown in table 1. Country 1 TABLE 1.-MAJOR WORLD PRODUCERS OF MINERALS AND METALS, 1976 • Insignificant. 1 The United States, the Soviet Union, and China are both large producers and consumers of minerals. Japan and West Germany must import massive tonnages of mineral raw materials for their requirements, whereas Canada and Australia are primarily exporters of minerals. 2 Estimates are for 1977. China had a particularly bad year in 1976, because of political problems and earthquakes. Estimate, raw. Japan imported 61,000,000 tons of hard coal in 1976, and West Germany 6,000,000 tons. In addition, United States produced about 80,000,000 tons of natural gas liquids in 1976, while importing sizable tonnages of crude also. Japan imported 230,000,000 tons of crude oil in 1976, and West Germany 98,000,000 tons. Estimated capacity at yearend 1977. 7 Estimate. Note: Data of production table above in metric tons unless otherwise noted. West Germany denotes Federal Republic of Germany. China denotes People's Republic of China. The coal production of PRC is nearly on a par with those of the United States and the U.S.S.R., and China's extensive coal reserves are capable of supporting a much expanded output. China has some of the world's largest coal bases; about 10 produce more than 10 million tons annually, with Kailan (Kailuan) turning out more than 20 million metric tons and 3 others Tatung, Fuhsin, and Fushunproducing in the range of 15 to 20 million tons. Chinese oil has suddenly come into prominence, and its potential could be very great, particularly onshore in the northern coastal areas and offshore in Pohai Bay and the South China Sea. Taching is producing about 40 million tons of crude annually. Shengli and Takang probably can be stabilized at 20 million tons yearly or more, and most likely two or three other new oilfields already being developed will turn out to be of the same magnitude. PRC's steel and cement industries, although still much behind the big three of U.S.S.R., United States, and Japan, are comparable with those of West Germany, France, Italy, and the United Kingdom. However, the steel industry may not move too fast during the remainder of the 1970's, and its only large steel base-Anshan-is barely within the world's first 20. On the other hand, the cement industry is gaining fast on the leaders. China has only four cement plants of 1 million tons annual capacity, but it has a sharply growing small-scale sector that already produces as much cement as the large plants. Overall demand for construction materials is spiraling upward. Most of China's export metals have been famous for decades, and they are appearing more in the world markets of late. China is again the "king of tungsten," and Hsihuashan and Kiangsi are household words in wolframite trade circles. The U.S.S.R. has been the foremost buyer of Chinese tungsten in recent years. Antimony from Hsikuangshan, Hunan, dominated the world market in World War I, but uses have since changed and China now finds itself in the company of South Africa and Bolivia, with not too much money to be earned. No. country can compete with Malaysia in tin, but China does well compared to the rest. Kuchiu in Yunnan is one of the tin centers of the world, and sizable quantities of high-quality Chinese tin have come to the United States in recent years. Mercury originating in Tungjen, Kweichow, has become difficult to sell in the world market, although still much in demand within China. Bismuth and manganese can be sold to whoever wants them. Molybdenum production is medium rank by world standards but could be developed. China has been a major world factor in chemical fertilizer output, consumption, and international trade for more than 5 years. It produces about 3 million tons of nitrogen (N) annually and consumes over 4 million tons; it is by far Japan's largest customer for fertilizer. The phosphate potential is good, but output is less than one-tenth that of the United States, the world leader. The Chinese salt industry, based mainly upon coastal salt flats, is rapidly expanding; China already produces at more than four-fifths the U.S. level. PRC is prominent in pyrite. Manchuria is one of the world's best known areas. for magnesite, in terms of both potential and production. China is a medium-sized producer of asbestos, graphite, barite, and fluorspar. Chinese steatite-grade talc is well known in world markets. MINERAL SUPPLY Like many other countries with large land areas, China is richly endowed with minerals associated with diversified geology. Fairly active exploration has greatly improved China's overall resource position in recent decades. Most prospecting done so far on hard-rock minerals has been based upon conventional concepts. However, application of the "continental collision" and lake-origin-deposition theories have resulted in major oil discoveries. Offshore oil certainly has possibilities. When the new geological concepts are applied to hard-rock minerals, significant deposits might well be discovered in hitherto unexplored areas and horizons. China has made serious efforts to prospect, drill, and develop its rich, widespread, and diversified mineral resources (figs. 1 and 2) in accordance with national priorities. Stress has been given first to basic materials essential for industrialization, which in turn will promote agriculture. Thus, export-oriented mineral industries have not received the same degree of emphasis, except for oil, which is of fundamental importance to the economy as well as very significant in trade. Some vital but difficult-to-develop mineral industries may 27-427-78-26 not have received the attention they deserved, such as nonferrous base metals. Overall, exploitation and development of Chinese minerals have been uneven. FIGURE 1 Nonetheless, China is now self-sufficient in most minerals, has large surpluses in many, and is deficient in only a few. No country can be totally independent of raw materials from abroad, (nor is it necessarily desirable for this to happen), and China is no exception. Table 2 gives a commodity-by-commodity review of PRC's mineral-supply position, which is clearly strong when compared with those of many industrialized countries. The Chinese have done well in the area of fuel supply. Coal production has been expanded to very high levels by the PRC on the basis of a potential known to be promising. However, little coal surplus has been available for export, and this situation is not expected to change unless projects can be developed for specific markets. The coking-coal supply situation can be improved through further careful industrial appraisal and delineation of resources. The oil industry has |