Full Breakdown
Former World Bank Chief Accuses China of Hoarding Food and Fertiliser Amid Global Supply Crisis
5/12/2026, 1:04:43 PM
The Accusation and Its Timing
Former World Bank president David Malpass told the BBC’s World Business Report, on the eve of the Trump-Xi summit in Beijing, that China “has the biggest world stockpile of food stuffs and of fertiliser” and can “stop building their stockpiles.” He linked the hoarding to the broader disruption caused by the Iran-related closure of the Strait of Hormuz, warning that the situation threatens global food security.
Context: Iran Conflict and Strait of Hormuz Closure
The ongoing Iran war has effectively shut the Strait of Hormuz, a chokepoint that handles roughly 20 % of daily global oil consumption and a substantial share of bulk-carrier traffic. The blockage has delayed shipments of agricultural inputs, prompting nations to scramble for fertiliser ahead of the Northern Hemisphere’s spring planting season. In March 2026, China halted several fertiliser exports, citing domestic supply protection.
Key Actors
- David Malpass – Former World Bank president (2019-2023) and former U.S. Treasury Under Secretary for International Affairs (2017-2019).
- Liu Pengyu – Spokesperson for the Chinese embassy in Washington, D.C.
- Chinese Government – Holds a dominant share of global agricultural reserves and controls fertiliser export policy.
- International Stakeholders – Including developing nations dependent on imported fertiliser, and the United States, which is preparing a high-level summit with China.
Data on China’s Agricultural Reserves and Fertiliser Exports
- China accounts for about 25 % of global fertiliser output, with exports valued at over $13 bn (£9.6 bn) last year.
- United Nations-cited estimates place China’s control of global grain stocks at 69 % of maize, 60 % of rice, and 51 % of wheat.
- The fertiliser embargo, enacted in March 2026, has driven up international prices of diammonium phosphate (DAP) and calcium ammonium nitrate (CAN), straining budgets of smallholder farmers, especially in Kenya where agriculture contributes 33 % of GDP and employs over 40 % of the workforce.
Official Statements & Responses
Malpass urged China to release its reserves, arguing that “open waterways worldwide” are in Beijing’s economic interest because Chinese firms own shipping lines, containers, and profit from global trade. Liu Pengyu responded that China is “deeply committed to maintaining the stability of global food and fertilizer markets” and that “the root causes behind the current disruptions… are crystal clear; this blame cannot be shifted onto China.” He also reaffirmed China’s status as the world’s largest developing country, describing it as a “legitimate right.”
Criticism & Opposition
Malpass challenged China’s self-identification as a developing nation, noting that it is the world’s second-largest economy and “in many ways rich.” He suggested that Beijing could “suspend” this pretence, which currently affords it preferential treatment in the World Trade Organization and World Bank.
Conflicting Reports & Gaps
The percentages of global grain reserves attributed to China appear in two separate source excerpts but lack independent verification within the provided material. No third-party data are offered to confirm or dispute Malpass’s stockpile claims, leaving a gap in objective evidence.
Verbatim Quotes
- “They have the biggest world stockpile of food stuffs and of fertiliser,” — David Malpass, former World Bank president
- “They present themselves as a developing country when they're the second biggest economy in the world and in many ways rich,” — David Malpass
- “China is committed to maintaining the stability of global food and fertilizer markets,” — Liu Pengyu, Chinese embassy spokesperson
- “The root causes behind the current disruptions in global food and fertilizer supply chains are crystal clear; this blame cannot be shifted onto China,” — Liu Pengyu
- “China benefits from open waterways worldwide.” — David Malpass
What’s Next
The upcoming summit between President Donald Trump and President Xi Jinping is expected to address trade, technology, and the maritime crisis in the Strait of Hormuz. Analysts note that any agreement on China’s export policies could immediately ease pressure on global fertiliser markets, while a stalemate may exacerbate food-security risks for vulnerable populations worldwide.
