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China eyes self-sufficiency as tensions grow with US and its allies

  • By Al Mayadeen Net
  • Source: Wall Street Journal
  • 13 Jan 2022 20:11
3 Min Read

China wants to become more self-sufficient by securing supplies, such as food, energy, and raw materials, with long-term tensions with the US and its allies soaring.

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  • China eyes self-sufficiency as tensions grow with US and its allies
    The WSJ said the agenda constitutes an improvement in the strategy President Xi Jinping announced in 2020 to prioritize domestic suppliers and consumers

A Wall Street Journal article spoke of the Chinese effort to bolster the economy in the face of tensions with the United States and its allies.

China's efforts include stockpiling key goods and materials, in addition to planning on boosting domestic production to decrease its reliance on the world.

According to the WSJ, China's economic agencies, including the National Development and Reform Commission and the ministry overseeing agriculture recently set security as a priority for 2022 - mainly that of supplies, including grains, energy, and raw material.

The efforts also include authorities securing the processes involved in the production and distribution of industrial equipment, parts, and commodities.

The newspaper highlighted that China increased its grain purchases in the last period and underlined plans to grow soybeans in arable lands, which it had nearly abandoned since joining the World Trade Organization in 2001.

The WSJ said the agenda constitutes an improvement in the strategy President Xi Jinping announced in 2020 to prioritize domestic suppliers and consumers, given their key role in the Chinese economy over foreign investment and exports.

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China is seeking more ways to increase its self-sufficiency, according to the newspaper, in several sectors, not just technology, such as certain foodstuffs for which China has been relying on exports. This is driven by Beijing "fearing" US sanctions as bilateral ties deteriorate over time.

China could purchase half of the world's food reserves: USDA

According to data from the US Department of Agriculture, China is projected to have 69% of the globe's corn reserves in the first half of the crop year 2022, in addition to 60% of its rice and 51% of its wheat, Nikkei Asia reported.

Russia's Izvestia daily quoted experts as saying China's desire for having more grain could lead to more decrease in global supplies and drive up the increase in global food prices.

As part of its food security policy, China passed a law to combat food waste, which entails harsh fines. The law classifies food waste as a misdemeanor and allows food companies and restaurants to impose higher rates on their customers in the case of waste.

The Chinese trade ministry called on its citizens in November to store foodstuffs and supplies in preparation for an unspecified emergency.

Tensions between Beijing and Washington were at an all-time high under the Trump administration at the height of the trade war and in light of the US imposing sanctions on Chinese tech firms.

One year into office, US President Joe Biden has failed to stabilize relations between the two nations with no de-escalation between Beijing and Washington despite a summit between Biden and Xi in November.

The tensions between the two sides are exacerbated by the crisis over Taiwan, with the US threatening with a military intervention in the case of any "hostile" Chinese actions against Taiwan, not to mention the cyber and trade wars between the two major powers.

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  • Xi Jinping
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