Xi Jinping says China must be ‘self-sufficient’ in energy, food and minerals amid global challenges
- China needs to establish a ‘strategic baseline’ for key primary commodities such as energy, grains and minerals, Xi Jinping says
- Resource shortages could turn into a ‘grey rhino’ risk – an obvious yet ignored threat – for the world’s No 2 economy, policymakers say
President Xi Jinping has said China must establish a “strategic baseline” to ensure self-sufficiency in key commodities, from energy to soybeans, as secure supply of primary products moves up the country’s long-term agenda.
At the central economic work conference last week, Beijing identified secure supply of primary goods such as agricultural products, minerals and energy as one of five “significant theoretical and practical issues” to prepare for amid the Covid-19 pandemic and changing international relations.
[We] should fortify the national strategic materials reserve system to secure minimum needs at critical moments
Establishing a “comprehensive conservation strategy” was also needed to prevent resource shortages, which could turn into a “grey rhino” risk – an obvious yet ignored threat – for the world’s No 2 economy.
While China can meet its commodity needs from both foreign and domestic markets, the government must establish a “safety line” for the size of imports that cannot be exceeded, Xi said.
“We should make clear the strategic baseline of self-sufficiency in key energy resources,” Xi was quoted as saying at the annual tone-setting economic conference, according to an article published in the party-run People’s Daily on Sunday.
“[We] should fortify the national strategic materials reserve system to secure minimum needs at critical moments.”