A former World Bank president is calling on China to stop stockpiling food and fertilizer, citing the country’s massive reserves as a key factor in the global supply crisis. David Malpass, who served as Treasury Under Secretary for International Affairs under President Donald Trump, made the comments ahead of the Trump-Xi summit in Beijing.
China has the world’s largest stockpiles of food and fertilizer, and Malpass believes that by stopping its stockpiling efforts, the country can help ease the global crisis. The shortage of fertilizer has already led to warnings of reduced crop yields and a potential bidding war for food, with the poorest countries likely to be hit the hardest.
Global Food and Fertilizer Crisis
The crisis has been exacerbated by the closure of the Strait of Hormuz, which has severely disrupted shipments of fertilizer and other essential goods. The boss of one of the world’s largest fertilizer producers has warned that the interruption to supplies could cost up to 10 billion meals a week globally.
China has halted exports of several types of fertilizer since March, citing the need to protect domestic supplies. This move has been criticized by Malpass, who believes that China’s claim to be a developing nation is no longer credible. China accounted for about 25% of global fertilizer output last year, with exports totaling over $13 billion.
Malpass also called on China to suspend its status as a developing country in the World Trade Organization and the World Bank, citing the country’s significant economic growth and wealth. China has responded to Malpass’s comments, stating that it is committed to maintaining the stability of global food and fertilizer markets.
Implications and Reactions
The global food and fertilizer crisis has significant implications for the United States, with Malpass warning that prices are likely to rise in the coming months. However, he also noted that the US economy is resilient, with robust jobs data indicating that the country can weather the storm.
The crisis has also sparked calls for a resolution to the conflict in the Middle East, with Malpass urging the international community to unite behind the US and demand an end to the violence. China, which has significant economic interests in the region, is seen as a key player in finding a resolution to the crisis.
The global food and fertilizer crisis serves as a reminder of the complex and interconnected nature of the global economy, and the need for international cooperation to address the challenges that arise from it.
