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Will The U.S. and China's Energy Consumption Collide?

China puts 25,000 new cars on the road every day — about 9 million automobiles a year — and already, the Chinese demand for oil is eight times what it is in the West. In 15 years or so, China — a country of 1.3 billion people — will have as many cars on its highway system as America does.

So what happens when 500 million Chinese are driving cars, not bikes? Where does the energy come from? And what happens when the world's most populous country begins to demand some of the gasoline and oil the U.S. has been taking for granted for so long?

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Nicholas Lardy, senior fellow at the Peterson Institute for International Economics, talks about what we should do to avoid a coming collision with China.

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