China Government, Concerned About Possible Shortages of Oil, Gas, and Food, Initiates Commodity Supply Operation Paying 139% More on Some Imports

Written by Roberta Souza

Published on 04/03/2022 at 13:19

Foto: Reprodução Google Imagens (disponível no site CNN)

Be the first to react!

Due to the Conflict Between Russia and Ukraine, Major Exporters of Gas, Oil, and Others, China’s Economy May Be Threatened

In recent days, the Chinese government has ordered maximum priority regarding the accumulation of oil, gas, food, and other natural resources. Chinese government agencies, including China’s most important economic planning institution, the National Development and Reform Commission, have complied with directives to coerce state buyers to search for international markets in order to secure these commodities, aiming to accumulate enough stock in case of shortages.

Read Also:

As reported by Bloomberg and also disclosed on the Exame website, in the original text by Carlo Cauti, foreign analysts believe the decision by China is an indication that authorities in the country foresee a worsening of the Ukraine war and a likely impact on global economies due to the lack of supply of imported products from the countries in conflict.

Considering this, Beijing, the capital of China, is keeping a list of commodities that could be negatively affected by global tensions. Below are the main items:

ARTICLE CONTINUES BELOW

China Doesn’t Care About Prices

The authorities in China involved do not mention viable maximum prices for the acquisition of these materials. Regardless of the cost, the current focus is solely on stock, not imports.

Without a doubt, the increase in commodity prices due to the recent conflict in Eastern Europe will result in complications for sustaining China’s constant growth. As evidence of this, it is seen that the country is paying 139% more for potassium imports compared to a year ago, considering that the Belarusian sector is under sanctions from the U.S. and the European Union.

Regarding energy supply, China’s power plants and steel mills are looking for options to replace Russian coal after some Chinese boats indicated they would reduce purchases due to the increasing sanctions imposed on Moscow.

After Indonesia, Russia is the largest source of coal for China. Not only a major supplier of coal, but Russia also competes with Saudi Arabia for the position of the largest oil supplier to the country.

In the last 10 years, the capital of Russia, Moscow, has developed trade alliances with Beijing. China has doubled its Russian energy product imports in the last 5 years, nearly reaching US$ 60 billion.

During a meeting between Vladimir Putin and Xi Jinping, several agreements were signed to expand the Russian supply of oil and gas, as well as wheat.

Additionally, China is a strong importer of Ukrainian grains, with over 8.2 million tons of corn purchased last year, which corresponds to 29% of total imports of this grain. And it doesn’t stop there: approximately 18 million tons of iron ore were also imported from Ukraine.

Russia, in turn, was responsible for almost 18% of China’s refined nickel imports at the end of 2021, as well as accounting for 12% of aluminum and 26% of palladium shipments.

As for the sunflower oil purchased by China, 30% came from Russia, while the other 70% came from Ukraine.

A casual shortfall could severely threaten Beijing’s food security, which has become one of the Chinese government’s top priorities, as shown by the record levels of recent imports of corn, wheat, and soybeans.

Country’s Fragility in Case of International Shortages of Gas, Oil, and Food

China’s efforts to safeguard food storage range from increasing local production to diversifying imports, advancing in the seed industry, and reducing food waste.

China has been working on developing its food and energy security since the impacts caused by the pandemic; however, pressures from the supply system and geopolitical issues, such as the diplomatic conflict with Australia, have harmed the Chinese economy.

China Government, Concerned About Possible Shortages of Oil, Gas, and Food, Initiates Commodity Supply Operation Paying 139% More on Some Imports

Due to the Conflict Between Russia and Ukraine, Major Exporters of Gas, Oil, and Others, China’s Economy May Be Threatened

Read Also:

China Doesn’t Care About Prices

Country’s Fragility in Case of International Shortages of Gas, Oil, and Food

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Spain installs two giant pipelines 2.2 km off the coast to draw water from the Mediterranean and supply a megafacility capable of producing 200 million liters of drinking water per day.

Without wheels, iron, or machines, teams of up to 32 men would have dragged 2.3-ton blocks over wet sand up a ramp embedded in the pyramid itself, raising the structure in 20 to 27 years, according to a new computer model that reignites a millennia-old debate.

New CNH rule allows the use of a private car in the exam, but insurers raise an alert about coverage in case of an accident

Brazil joins a 5-year international mega project to combat plastic pollution on the coast with scientific monitoring, new environmental policies, and integrated actions that promise to reduce waste in strategic coastal cities of the country.

Workers were digging to build a railway in northern Mexico and found beneath their feet a 1,200-year-old village with underground houses, ancient burials, and rock engravings.

$786 million bridge becomes subject to technical alert after engineer points out risk in deep piles used in the foundation over the Derwent River in Tasmania

The scientists did not expect it, but they found fossils of mysterious species in a cave among volcanic ashes over 1 million years old, revealing an ancient history.

China Government, Concerned About Possible Shortages of Oil, Gas, and Food, Initiates Commodity Supply Operation Paying 139% More on Some Imports

Due to the Conflict Between Russia and Ukraine, Major Exporters of Gas, Oil, and Others, China’s Economy May Be Threatened

Read Also:

China Doesn’t Care About Prices

Country’s Fragility in Case of International Shortages of Gas, Oil, and Food

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Spain installs two giant pipelines 2.2 km off the coast to draw water from the Mediterranean and supply a megafacility capable of producing 200 million liters of drinking water per day.

Without wheels, iron, or machines, teams of up to 32 men would have dragged 2.3-ton blocks over wet sand up a ramp embedded in the pyramid itself, raising the structure in 20 to 27 years, according to a new computer model that reignites a millennia-old debate.

The United States purchased for $125 million a ship that Shell used for drilling oil in the Arctic, spent another $25 million refurbishing it, and renamed it Storis because the largest economy on the planet can no longer build an icebreaker on its own.

The largest highway concession company in Brazil already belongs to an Italian group, and now the railway sector may be next to receive billions in investments from Italy amid the progress of the Mercosur and European Union agreement.

Work less and earn the same? PEC discussed by Lula and Hugo Motta affects the 6×1 schedule and reignites the debate on working hours, days off, and salary in Brazil.

Companies from Ceará generate billions and dominate Brazil without many people noticing, with giants born in the state such as Hapvida, Pague Menos, M. Dias Branco, and Três Corações totaling almost R$ 104 billion in revenue just in 2024.

A ton of old cell phones can contain up to 800 times more gold than a ton of ore extracted from a mine, according to the UN, and it is this hidden wealth in drawers that drives so-called urban mining, which can even be turned into Olympic medals.

New CNH rule allows the use of a private car in the exam, but insurers raise an alert about coverage in case of an accident

Brazil joins a 5-year international mega project to combat plastic pollution on the coast with scientific monitoring, new environmental policies, and integrated actions that promise to reduce waste in strategic coastal cities of the country.

Workers were digging to build a railway in northern Mexico and found beneath their feet a 1,200-year-old village with underground houses, ancient burials, and rock engravings.

$786 million bridge becomes subject to technical alert after engineer points out risk in deep piles used in the foundation over the Derwent River in Tasmania

The scientists did not expect it, but they found fossils of mysterious species in a cave among volcanic ashes over 1 million years old, revealing an ancient history.