China is the largest economy and a huge importer and exporter of commodities it has always had a huge influence on the commodities market and now with the trade war between the nation and the United States was thought to affect the imports of commodities to the nation.
In some 40 years, China has grown to become the world’s largest buyer of a number of commodities ranging from soybeans to copper making it one of the biggest importers. China’s influence across global commodity markets is without parallel stated Wood Mackenzie, a commodities consultancy. China’s appetite for commodities has grown since the country’s economic reforms in 1978, tracking its rise to become the world’s second-largest economy. Demand for raw materials like copper and steel have been largely driven by the country’s manufacturing and construction boom, as well as by the needs of its 1.4 billion population. China’s massive infrastructure project — the Belt and Road Initiative spanning many resource-rich countries across Europe and Asia — will also promote trade between China and countries such as Ukraine along the route. Some of that trade includes important suppliers of grains, said research house Fitch Solutions. The commodities markets all over the world are now kind of dependent on the Chinese markets.
The commodities import and exports all over the world might be affected due to the nearing recession and a rise in inflation of almost all the nations. China’s rising imports for the commodities are also seen by some as an attempt to hoard commodities as the world conditions deteriorate day by day.