[Commentary] Chinese Communist Party Imports up 51% in May

Author: MOS Fitness Group — Ivy001

The General Administration of Customs of the Communist China (GAC) released trade statistics in U.S. dollars for May 2021 on June 7th, showing exports rose 27.9 percent from a year ago to $263.9 billion. Imports rose 51.1 percent to $218.3 billion. Regarding imports, higher resource prices pushed up the overall level, marking the largest increase since January 2011, after a 10-year and four-month hiatus. However, regarding exports, the appreciation of the RMB became a heavy burden.

For imports, it was resources and grains that pushed up the overall. Iron ore imports reached 2.1 times the amount of the same month in 2020, soybeans increased by 42%, semiconductor (chip) imports increased by 24%, and imports from the United States and Australia increased from 40% to 60%.

In fact, global food production has reached a moderate growth for the third year, global food stocks have reached new highs, and food consumption has not grown much. However, the future prices of both corn, wheat, soybeans, barley, and rice are in a rising market. Among them, soybeans, corn, and wheat have increased from 80% to 110% over the same period last year, reaching a new record high. The prices of raw sugar and sugar are also in a surge, up 80%.

The non-ferrous metals sector, iron ore, copper, and aluminum are also in a surging market. As global economic growth slowed down last year due to the epidemic, the demand for non-ferrous metals in building materials, automobiles, ships, aircraft-metal consuming industries also slowed down. Finished metal products that are proportional to the growth rate, such as steel and  copper wire actually grew very little, about 10%. But non-ferrous raw materials are in the midst of a surge, more than doubling compared to the same period last year.

Semiconductor (chips) are a serious global shortage, with the price in line with the laws of the market.

The continuous upward market of food and non-ferrous metal sectors is not in sync with global demand, but in sync with the demand of Communist China. It is obvious that the CCP is buying up grain and non-ferrous metals in large quantities. In other words, it will be obvious to everyone that the CCP is buying strategic materials in large quantities.

Why is this?  First, because Communist China is really short of food. Second, because the CCP is preparing for the possibility of being decoupled in the future. Third, because the CCP is also preparing for war; they are still fantasizing about recovering Taiwan. 

The direction of grain and non-ferrous metal will also depend on the future needs of the CCP.

Picture source: RFI 

https://www.rfi.fr/cn/中国/20210607-中国5月进口报告增长51%-粮食与铁矿石进口多

Proofread/Posted by: Brain Sanitizer

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