Reportedly, in just 40 Years, China has become the largest purchaser of a number of commodities globally, varying from soybeans to copper. Previously in this year, Wood Mackenzie, which is a commodities consultancy, in a report stated, “China’s influence in international commodity markets is unmatched.” China’s desire for commodities has surged ever since the nation’s economic reformation occurred in 1978, trailing its augment to become the second-largest economy globally. The demand for raw materials such as steel and copper has been largely boosted by the country’s construction and manufacturing industry, and by the needs of its 1.4 Billion population.
Since Beijing honors the 70th anniversary of Communist China on October 1 in this year, there are advancing fears the country’s trade war with the U.S. might impact the prices of commodities in the middle of an anticipated global slowdown. While the trade tensions would persist to hurt the markets, the medium-term prospect for different merchandise or goods will still see China being a top purchaser although the country’s financial growth is anticipated to moderate, reported analysts. The trends like transfers to cleaner energy would also aid in shaping the sector.
On a similar note, lately, a think tank stated that China needs to alter the way it finances the economy. China needs to widen a better system for funding small businesses that compel innovation in the economy but presently struggle to access the funds they require for growth, a top Chinese think-tank stated in a report. Over the past 40 Years, China’s economic development has taken place from a financial system that has high administration interference and is “completely controlled by banks,” the China Finance 40 Forum reported in an annual report. However, such a model inclines to distort economic resources supporting large firms, the report said.