The US-Israeli war on Iran has triggered a global food and energy crisis that, by some estimates, could push as many as 45 million people into hunger – on top of the hundreds of millions already going hungry around the world. Prices of staple foods are rising sharply, supply chains through the Persian Gulf are disrupted, and the burden, as ever, will fall hardest on the Global South.
In this important essay for Geopolitical Economy Report, Joe Scholten examines how China has prepared for precisely this kind of crisis – and how rational socialist planning has insulated its 1.4 billion people from the kind of shock the world is facing.
The lesson is not new. During the 2022 food crisis triggered by the war in Ukraine, world prices of corn, wheat and soybeans nearly doubled; US grocery prices rose by 11.4 percent that year. China was largely unscathed, thanks to a strategic food reserves system. Today, that system stands at over 700 million metric tons of grain – enough to feed the entire population for a year. Add to this a vast fertilizer reserve, world-leading agricultural drone deployment (over 300,000 units, more than half the global total), AI-enabled pest identification, and $757 billion in water conservation investment under the 14th Five-Year Plan.
As the author puts it: “State planning and the socialist mode of production, in the form of state-owned enterprises and cooperatives under the guidance of a communist party, are capable of addressing fundamental needs.” Where Western pundits once mocked China’s stockpiling as either bureaucratic waste or preparation for aggressive war, the reality is now plain to see: China has anticipated the crisis that US imperialism has manufactured, and stands ready to help cushion its neighbours from the worst of it.
I wrote an article on the topic of food security in China in 2022. The main rationale for that prior essay was that there had been warnings of a global food crisis as the result of the war in Ukraine.
Indeed, prices of staple commodities like corn, wheat, and soybeans nearly doubled in price in the first year of the conflict, and millions were pushed into hunger worldwide.
Continue reading How China prepared for the new global food crisis, caused by the US war on Iran