The impact of the price of oil on China's economy

At the start of the 21 st century, China's oil consumption rose rapidly. The negative impact of the high price of oil on China's economy is becoming more and more apparent. This paper describes the effect of high oil prices on the Chinese economy, and it examines the impact of fluctuations of' oil prices on China's Gross Industrial Product per capita through regression analysis. The results show that there are asymmetric effects of oil price changes. Symmetric analysis suggests that every 10% increase (decrease) of oil price leads to approximate 0.4% decrease (increase) of Gross Industrial Product per capita (GIPC). If asymmetric outcomes are permitted, then a 10% increase in the price of oil leads to a 0.69% decrease in Gross Industrial Product per capita of China, but a 10% decrease in the price of oil leads to only a 0.15% increase in GIPC.