Former World Bank Chief Calls on China to Release Food and Fertiliser Stockpiles
BBC Business reported Tuesday that former World Bank president David Malpass is demanding China release its China fertiliser stockpiles to ease a deepening global supply crisis. Malpass made the remarks in an interview with the BBC World Service, timed ahead of a high-stakes summit between US President Donald Trump and Chinese President Xi Jinping in Beijing.
China Sits on the World’s Largest Reserves
Malpass, who led the World Bank from 2019 to 2023 and previously served as US Treasury Under Secretary for International Affairs, said China holds the single largest national stockpile of both food and fertiliser on the planet. He argued Beijing should stop expanding those reserves rather than restricting exports to the rest of the world. China suspended shipments of several fertiliser types in March, pointing to the need to protect domestic availability. That move followed a series of export restrictions that have accumulated since 2021. Last year, China supplied roughly a quarter of global fertiliser output and generated over $13 billion in export revenue from the commodity.
A Crisis With Roots in the Strait of Hormuz
The effective closure of the Strait of Hormuz, triggered by the ongoing Iran conflict, has severely disrupted energy and petrochemical shipments worldwide. Fertiliser supply chains have been hit especially hard, because key inputs rely on those same shipping routes. Svein Tore Holsether, chief executive of fertiliser giant Yara, warned the BBC earlier this month that reduced supply could cost the world up to 10 billion meals per week and would fall hardest on the poorest nations. He cautioned that shrinking crop yields could spark a global bidding war for food ahead of spring planting season.
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Background: China’s Disputed Status in Global Institutions
Malpass also challenged a longer-standing grievance among Western policymakers. He said China’s self-identification as a developing nation inside the World Trade Organization and the World Bank is no longer credible given that it is the world’s second-largest economy. He suggested Beijing could voluntarily suspend that designation. The Chinese Embassy in Washington pushed back, saying China remains the world’s largest developing country and that this status is grounded in factual evidence. A spokesperson added that blame for global supply disruptions cannot fairly be directed at China.
Outlook Ahead of US Inflation Data
On the broader US economic picture, Malpass said American consumers should brace for higher prices on many goods, though he noted that strong jobs figures suggest underlying resilience in the economy. April US inflation data was due for release Tuesday, with markets watching closely for any sign that tariff pressures are feeding through to consumer prices.
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