The Influence of High Petroleum Price on Economic Development of China

Petroleum is known as the industrial blood. Its price goes up constantly and will undoubtedly influence on every country economy. According to estimation of the international organization, the price on the petroleum of each barrel increase by $10, inflation will increase by 0.5%, economic growth rate will reduce by 0.25%, unemployment rate will increase by 0.01%. China, as a petroleum consumer large country and as a large petroleum import country, undoubtedly will be influenced by world high petroleum price. The paper has looked back the domestic and international petroleum price trend of the 1-9 month of 2004 and analyzes the reasons of high petroleum price and the influence on economic development of china. Then authors put forward same countermeasures.