India, China set to form a working group on energy
This is not a problem of “not enough buying power” but rather a problem of ossified, antiquated energy structures that need urgent reform. Both countries have the problem that their energy needs are huge, their baseload energy comes from coal and infrastructure in order to make the change to gas is woefully inadequate. Both need to clean up their power production which costs money. Chinas USP was always cheap labor and a total disregard for the environment. They basically wasted their population and their country for export dollars. Indias problems are bigger on the decision-making side as China is quicker here. Both of them are monster buyers – both of them have the ear of the market without teaming up. This smells of an excuse in preparation – do your homework first.
China and India’s proposed arrangement to form a buyers’ bloc to bargain collectively for oil supplies has acquired an institutional character with the two strategic rivals moving ahead to set up a joint working group (JWG) on energy.
