Speakers: Natasha Kaneva, Head of Global Commodities Research   China’s imports of commodities are at all-time highs, in stark contrast to the wider, faltering macroeconomic growth in the country. As the world’s single largest consumer of commodities, China has three main sources of vulnerability: (i) it has abundant domestic resources of coal and rare earth but is relatively poor in others, (ii) with only 7% of the world’s arable land and limited fresh water resources, the country feeds about 20% of the world’s population, and (iii) most commodities are shipped to China via eight marine choke points—including the Strait of Malacca—over which the US has significant influence. To ensure the long-term security of strategic commodities, China is pursuing a three-pronged strategy: (i) more efficient development of domestic mineral and agricultural resources, (ii) establish control of resource bases overseas via equity stakes and partnerships, and (iii) build-up of strategic stockpiles. Given the increasing share of China-owned assets in the country’s total commodity import mix and China’s goal to boost its strategic reserves, the nation’s imports of natural resources will continue to grow.   This podcast was recorded on 3 July 2024. This communication is provided for information purposes only. Institutional clients can view the related report at https://www.jpmm.com/research/content/GPS-4466326-0 for more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2024 JPMorgan Chase & Co. All rights reserved. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. It is strictly prohibited to use or share without prior written consent from J.P. Morgan any research material received from J.P. Morgan or an authorized third-party (“J.P. Morgan Data”) in any third-party artificial intelligence (“AI”) systems or models when such J.P. Morgan Data is accessible by a third-party. It is permissible to use J.P. Morgan Data for internal business purposes only in an AI system or model that protects the confidentiality of J.P. Morgan Data so as to prevent any and all access to or use of such J.P. Morgan Data by any third-party.