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Call to ease global supply crisis
China should halt its accumulation of food and fertiliser reserves to alleviate a worldwide shortage triggered by the Iran conflict, former World Bank President David Malpass told the BBC ahead of the Trump-Xi summit in Beijing.
Stockpile concerns
Malpass, who also served as U.S. Treasury Under Secretary for International Affairs under Donald Trump, highlighted China's position as the largest holder of global food and fertiliser reserves. "They can stop building their stockpiles," he said, arguing that releasing supplies would help stabilize markets.
Disrupted shipments and rising risks
The closure of the Strait of Hormuz has severely disrupted fertiliser shipments, prompting countries to scramble for supplies before the spring planting season. Svein Tore Holsether, CEO of fertiliser giant Yara, warned earlier this month that the supply interruption could eliminate up to 10 billion meals weekly, with the poorest nations bearing the brunt of the impact.
Reduced fertiliser use could lead to lower crop yields and spark a global bidding war for food, Holsether added.
China's export restrictions
Since March, China has suspended exports of several fertiliser types to safeguard domestic supplies, building on restrictions introduced since 2021. Last year, China produced roughly 25% of the world's fertiliser, exporting over $13 billion worth.
Debate over China's developing nation status
Malpass also challenged Beijing's claim to developing nation status, calling it outdated given China's position as the world's second-largest economy. "They present themselves as a developing country when they're in many ways rich," he said, suggesting China could relinquish this designation in the WTO and World Bank.
"China is universally recognized as the largest developing country-a designation grounded in ample factual evidence. Upholding its status as a developing country is a legitimate right of China."
Liu Pengyu, Chinese Embassy spokesperson in Washington
Iran conflict and global trade
On the Iran ceasefire, which Trump described as being on "massive life support," Malpass urged global unity behind the U.S. to demand a resolution. "You can't have a rogue state with plutonium, and you can't block the Strait of Hormuz," he said.
He expressed hope that China would help break the deadlock, noting that free navigation in the Strait aligns with Beijing's economic interests. "China benefits from open waterways worldwide. They run the shipping lines, own the containers, and make huge profits from trade with the rest of the world. They would be a big loser if Iran controlled the Strait of Hormuz."
U.S. economic outlook
Ahead of April's U.S. inflation data, Malpass predicted rising prices for many products but pointed to "robust" jobs data as a sign of economic resilience.
