Former World Bank Chief Urges China to Stop Stockpiling Food and Fertilizer
David Malpass, the former World Bank president, has called on China to cease its stockpiling of food and fertilizer amid a global supply crisis linked to the conflict involving Iran. Malpass made these remarks ahead of a scheduled meeting between US President Donald Trump and China’s Xi Jinping in Beijing.
Concerns Over China’s Stockpiling Practices
Speaking to the BBC’s World Business Report, Malpass highlighted that China holds the largest global reserves of food and fertilizer. He urged China to stop increasing these stockpiles to help alleviate worldwide shortages. The disruption in fertilizer shipments has been exacerbated by the closure of the Strait of Hormuz, a critical shipping route.
China has suspended fertilizer exports since March, citing the need to secure domestic supplies. This move has contributed to the global scramble for fertilizer ahead of the spring planting season.
China’s Economic Status and Global Role
Malpass also questioned China’s continued classification as a developing country in international organizations such as the World Trade Organization and the World Bank. He pointed out that China is the world’s second-largest economy and, in many respects, a wealthy nation. He suggested that China could reconsider this status.
Regarding the ongoing tensions related to Iran, Malpass emphasized the importance of global unity behind the United States to resolve the crisis. He stated that allowing a “rogue state” to control plutonium or block the Strait of Hormuz is unacceptable.
Malpass expressed hope that China would support efforts to maintain open shipping lanes, noting that China benefits economically from free global trade. He remarked that China operates shipping lines, owns containers, and profits significantly from international commerce, making it a major stakeholder in keeping waterways open.
Economic Outlook and Inflation
On the US economic front, Malpass commented on the inflation outlook ahead of upcoming data for April. He indicated that prices are expected to rise for many products but noted that strong employment figures demonstrate the resilience of the US economy.