China appears to be on a “hoarding binge,” accumulating strategic commodities, such as electronics, minerals, wheat, and cotton.
The United States is one of its most important suppliers on a worldwide scale.
What are they planning?
Chips have been hoarded in Beijing.
China’s widespread hoarding, according to industry experts, contributed to the global chip scarcity. Indeed, China’s State Administration for Market Regulation initiated an investigation into stockpiling and other speculative tactics in August, after the government discovered they were disrupting their own market.
It also triggered the US Commerce Department to seek sales data from the world’s major semiconductor makers in September. It wanted to know the top three buyers of the company’s products in each of the previous three years.
According to some observers, Washington required the information to determine how much China’s hoarding contributed to the chip shortage.
BREAKING: Possible Fire Aboard Chinese Navy (PLAN) Warship, Qingdao, China
Credits on the image pic.twitter.com/LKUgo3VC5n
— Frontalforce 🇮🇳 (@FrontalForce) December 28, 2021
China, as the world’s largest manufacturer of electric vehicles (EVs), is aggressively acquiring cobalt, a critical metal used in EV batteries, from other countries.
The world’s second-largest country has purchased the majority of Congo’s cobalt-producing mines in the last five years, accounting for two-thirds of global output.
According to a recent New York Times story, Chinese businesses owned or funded 15 of Congo’s 19 mines as of last year.
“The enterprises received at least $12 billion of debt and other funding from state-backed banks,” according to the audit, “and are likely to have drawn billions and billions more.”
China’s cobalt buying binge began when US mining company Freeport-McMoRan sold two big cobalt assets in Congo to a Chinese company backed by the government.
According to the report, the transaction “marked the end of any major U.S. mining involvement in cobalt in the country.”
Why are they stockpiling food?
China’s stockpile of agricultural products is similarly impressive. According to estimates from the United States Department of Agriculture, China presently controls nearly half of the world’s corn and other important food reserves.
China’s wheat purchases increased significantly earlier this year.
Corn and sorghum imports increased four and five times a year ago, correspondingly. By the first half of 2022, China’s corn, rice, and wheat stockpiles are predicted to reach 69 percent, 60 percent, and 51 percent, accordingly.
The 2nd PLAN #Chinese #Navy Type 075 assault ship seems to be named GUANGXI 32, at least this ballcap seems to indicate. Ship began trials 21 Dec 2020 and is expected to be commissioned soon, a point when generally the name is officially announced. Image via @lqy99021608 pic.twitter.com/eU2zHoC1Ah
— Chris Cavas (@CavasShips) December 25, 2021
China is also importing a lot of cotton from the United States.
Weekly cotton exports to China surged by a third in October, compared to the same month last year, bringing U.S. cotton reserves to their lowest level this year.
Although a cotton harvest is predicted in America this year, due to decreased temperatures, it may be much later than typical. As a result, cotton prices have skyrocketed.
Securing the availability of primary goods, such as farm commodities and minerals, was recognized as one of five major concerns to prepare for, amid global challenges at China’s proper economic work meeting earlier this month.
