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China is the fastest growing major economy in the world, averaging a ten percent growth rate for the past 30 years. Experts predict that the GDP growth of China will slow through the end of this year. From a long-term perspective, this is good. It allows the country to position itself for a more sustainable pace of growth in the future. China can rely more on its domestic sector and less on fixed asset investment and exports.

Reports using extrapolations of past real GDP growth rates reveal something many have long suspected. The Chinese economy will have a size surpassing the U.S. in terms of purchasing power between the years 2012 and 2015. The prediction is that China will become the largest economic power in the world by 2025.

The situation with crude oil is just one example of the country’s increasing need for commodities. To support its growth, China is currently importing three times more crude oil than it did just eight years ago. Declining GDP growth and industrial production will result in slow growth through the year’s end. Starting in September 2011, refining capacity is predicted to expand. Refineries will need additional crude oil imports to operate.

In 2011, it is predicted that China will use over 9.3 million barrels of crude daily, an increase of 4.5 percent from 2010. The country will represent one-third of the world’s new crude oil demand in 2011. As China builds its reserves of petroleum, it will add storage capacity totaling 40 million barrels during the first half of 2011.

The rapid urbanization in China has increased its need for steel and cement. As China’s economic growth increases, its demand for commodities like iron ore, platinum, aluminum, and copper increases. China will exert increasing power on the commodities market. Fluctuations in the Chinese economy will continue to affect the global prices of commodities.