Chinese policymakers have deployed comprehensive and far-reaching measures to tame soaring prices of key commodities such as crude oil, coal, iron ore, copper, porks, wheat, and soybeans. The country has been releasing coal and metals from its strategic reserves while threatening to punish companies for inflating prices or hoarding supplies.
Earlier this year, China initiated a crackdown on the misuse of crude oil import quotas. Analysts expect the measure to push China’s oil imports to the lowest levels in about twenty years. China’s oil imports have grown by an average annual pace of almost 10% in the last five years.
China, the world’s largest coal producer and consumer, launched a probe into hoarding and speculation after prices hit all-time highs this spring. Reuters reported that China consumed around 4 billion tons of coal in 2020, with imports rising 1.5% to 303.99 million tons.
In May, the National Development and Reform Commission (NDRC) said it would step up price controls on corn, iron ore, copper, and other major commodities through 2025 while improving monitoring and analysis of commodity prices such as natural gas, crude oil, and soybean.
