The global food and fertiliser crisis, exacerbated by the ongoing Iran war, has prompted a former World Bank president to call for China to release its stockpiles. David Malpass, in an interview with the BBC's World Business Report, urged China to stop hoarding these essential resources, highlighting their significant reserves.
Malpass' comments come at a critical juncture as countries worldwide grapple with fertiliser shortages, a situation worsened by the closure of the Strait of Hormuz. China, which has halted fertiliser exports since March, finds itself at the center of this debate.
"China's claim to be a developing nation is no longer credible," Malpass asserted. He argued that China's economic might, as the world's second-largest economy, contradicts its developing nation status within international organizations like the WTO and the World Bank.
The BBC has sought comment from the Chinese embassy in Washington, but no response has been received thus far.
In the context of the Iran ceasefire, which President Trump described as being on "massive life support," Malpass emphasized the need for global unity behind the US in demanding a resolution. He stressed the unacceptable nature of a rogue state possessing plutonium and blocking critical waterways like the Strait of Hormuz.
Malpass expressed hope that China, with its significant economic interests in open waterways, could play a role in resolving the Strait of Hormuz deadlock. He pointed out that China's shipping and trade interests would be severely impacted if Iran gained control of this vital waterway.
Looking ahead to the US inflation data for April, Malpass predicted rising prices for many products. However, he remained optimistic about the overall economic resilience, citing robust jobs data.
This situation raises important questions about global resource management and the role of major economies in ensuring stability. It will be interesting to see how China responds to these calls and whether it takes steps to alleviate the global supply crisis.
