Former World Bank President David Malpass has outlined how China must stop its greedy stockpiling of food and fertilizer to ease the supply crisis caused by the war in Iran, writes the BBC.
Malpass was undersecretary of the Treasury for international affairs during US President Donald Trump’s first presidency. Speaking ahead of Trump’s upcoming visit to Beijing, Malpass said China has the world’s largest food and fertilizer reserves and is continuing to build up reserves. His comments come as many countries around the world are desperately trying to secure their necessary fertilizer supplies ahead of spring planting, while the Strait of Hormuz, a vital transit route, remains closed.
China, citing the need to protect its domestic supply, suspended exports of several types of fertilizer in March. This adds to restrictions that have already been in place since 2021. Last year, China’s exports accounted for 25% of the world’s fertilizer use, with the value of the products exported reaching 13 billion euros.
Malpass, who led the World Bank from 2019 to 2023, said Beijing’s claim that China is a developing country was no longer justified. He stressed that it is the world’s second-largest economy, which is very rich in many ways, but continues to call itself a developing country.
A spokesman for the Chinese embassy in Washington told the BBC that
China was committed to maintaining the stability of the international food and fertilizer markets,
adding: “The root causes behind the current disruptions in global food and fertilizer supply chains are crystal clear; this blame cannot be shifted onto China.” In response to Malpass’s remarks on China’s status as a developing country, the embassy spokesman said that China is universally recognized as the largest developing country, a definition based on extensive factual evidence. He stressed that China has the legitimate right to exercise this status.
Regarding the ceasefire in Iran, which Trump described on the 11th of May as “dependent on life support,” Malpass said that the world should stand united with the United States because “there cannot be a rogue country with plutonium and you cannot just block the Strait of Hormuz.” Malpass expressed hope that China could help find a solution to open the Strait of Hormuz, as it is in its economic interests. He noted that China benefits greatly from open shipping lanes: “They run the shipping lines, own the containers, and make huge profit from trade with the rest of the world. So, they would be a big loser if Iran in some way had control of the Strait of Hormuz.”
When asked about the economic outlook for ordinary Americans, Malpass said prices are rising and he expects them to continue to rise for many products, but overall the US economy is resilient.
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