Why is China importing and hoarding things at high prices?

In the last one year, China’s import of grains, crude oil, copper, cobalt and iron ore is increasing rapidly. It would not be wrong to say that imports have broken all records. According to an estimate, there has been an increase of about 16 percent in the import of all types of commodities. This increase is still continuing.

So the question arises that why is China buying and importing things at high prices. What is the reason for this? According to experts, the consumption of things has not increased in China, which is facing many challenges on the economic front. In such a situation, importing and storing expensive commodities can be China’s objective.

China’s biggest concern is that important supply routes may be disrupted after the presidential elections in America. But what is this concern? Experts are linking it to preparations for a war, or is it just an attempt to deal with the possibility of a crisis. Experts are trying to find out the reason for this.

China’s fear may be correct, because it is dependent on foreign resources.

Although many metals are refined here, a large part of the necessary raw materials is imported, which includes 70 percent bauxite and 97 percent cobalt. For energy needs, 40 percent of natural gas and 70 percent of crude oil have to be imported.

Till the year 2000, almost all the food items were produced in the country itself, which has remained less than two-thirds today. It is also dependent on foreign countries for coffee, palm oil and some dairy products.

Given China’s military expansion and growing tensions with Taiwan, “excessive” storage is a danger signal. Analysts at the US Defense Department say that this can promote inflation by increasing commodity prices. Apart from this, this could be China’s move to distance itself from America. Along with buying large amounts of gold at the beginning of the year, it started selling its holdings of US government debt so that it can avoid a “dollar ban” in case of a conflict with the West.

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