China’s rapid accumulation of commodities has drawn global attention and led some analysts to speculate President Xi Jinping’s country is girding itself for war over Taiwan.
“Xi seems to have studied the sanctions playbook the West used against Russia over Ukraine and subsequently initiated long-lead protective measures to batten down the hatches of China’s economy to resist similar pressure,” former Office of Naval Intelligence head Michael Studeman wrote recently on foreign policy analysis website War on the Rocks.
China claims democratic Taiwan as its territory, though Beijing’s ruling Chinese Communist Party has never governed there. U.S. officials believe Xi has instructed Chinese forces to be prepared to invade the island by 2027, though opinion in Washington is divided on the reality of this threat.
Among the resources being stockpiled is gold. Prices of the precious metal hit record highs in recent months as China’s central bank diversified its holdings and consumers turned to the safe haven amid a flagging stock market and the country’s strict capital controls.
The People’s Bank of China increased its gold reserves for the 18th consecutive month in April, boosting them by 5 percent in dollar terms following an 8 percent rise in March.
“Gold reserves have always been an important part of China’s diversified international reserves,” Liu Pengyu, spokesperson for the Chinese embassy in the U.S., told Newsweek when asked whether the stockpiling was a sign of preparations for war. “From a long-term and strategic perspective, China dynamically adjusts the allocation of its international reserve portfolio as needed to ensure the safety, liquidity, preservation, and appreciation of international reserves,” he added.
Taiwan has not commented publicly on China’s stockpiling.
Read more at Newsweek.com
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