China’s goals vary by commodity. Chinese companies have bought iron ore heavily on the spot market in anticipation of higher prices in annual contract talks now nearing completion. The Chinese government has been stockpiling oil and some metals for strategic reasons, and bought huge quantities of aluminum and canola to insulate domestic producers of these goods from falling global prices over the winter.
“There has been enormous stockpiling of all commodities” by China, and this cannot continue indefinitely, said Tim Huxley, the chief executive of Wah Kwong Maritime Transport Holdings, a big shipping line based here.
Those extra purchases beyond China’s daily needs have helped reverse the price collapse in commodities that followed the economic downturn, but could also limit the scale of the rebound.
At the same time, China is engaging in a heavy militarization build up. put two and two together and come to a conclusion. They are stockpiling against a time when it will help them to pursue their agenda, which has never changed.
And a war.
One China.
I agree Br. Michael, it’s in aid of China’s plan to take advantage of US economic suffering.
[i] Slightly edited by elf. [/i]