Is China Preparing for War? Soaring Wheat, Gold Stockpiles an Ominous Sign

China has recently opened the floodgates to the import of crucial food supplies, causing some geopolitical experts to speculate that the communist country may be preparing for war.

According to SunSirs, a commodity data provider, data compiled on April wheat imports is predicted to show shipments to the Chinese mainland hit 1.68 million tons, a substantial year-on-year increase of 141%.

The April data is projected to record the most significant single-month volume of Chinese wheat imports.

SunSirs also estimates that from January to April 2023, China imported 6.03 million tons of wheat, an increase of over 60% compared to the same period in 2022. It says its data has been collected from transaction information from over 100,000 market participants along with three key China futures indexes — the Dalian Commodity Exchange (DCE), the Shanghai Futures Exchange (SHFE), and Zhengzhou Commodity Exchange (ZCE).

Large volume of food imports continues to be a trending topic on Chinese social media platform

On the Chinese social media platform WeChat, the large volume of food imports continues to be a trending topic. 

“Have heard the CCP asked importers to ship as much grain and sugar as possible, and importers are able to avoid tariffs for quick shipments,” one Chinese commentator wrote. 

Although some suggest the rapid surge in grain imports is due to a poor domestic harvest season, others point to the stockpiling of sugar, oil, and grains, along with the hoarding of grains in recent years, as proof China is preparing for war. 

“China’s going to go to war, I don’t know how else you can put this, this is a regime that wants to go to war, it knows better, but nonetheless there is a blood lust there…How many times do you have a militant regime on breakneck build-up then doesn’t go to war?” said the author of “The Great U.S.-China Tech War,” Gordon Chang, in a recent interview. 

President Xi Jinping announced a 7.2 percent increase in the defense budget

President Xi Jinping announced a 7.2 percent increase in the CCP’s defense budget at China’s National People’s Congress in March of this year. In the following months, the party announced new military readiness laws. It opened new air-raid shelters in cities close to Taiwan and National Defense Mobilization offices across the massive country.

Chinese political experts Matt Pottinger and John Pomfret, in an article for “Foreign Affairs,” noted the developments, as well as the fact Xi Jinping has told generals publicly they must “dare to fight,” should be taken seriously. 

Unusual patterns of price movements in the global gold markets have opened the door for China to increase gold reserves in recent years substantially.

Gold commentator Dominic Frisby has previously said that he believes China now holds more gold than the United States after the enormous accumulation period.

“This is, in my view is, the biggest story in global finance, and yet nobody is reporting on it,” said Frisby. “Both Russia and China have known they must de-dollarize for some considerable time, which is why both have been so steadily increasing their gold holding.”

Head of research at Goldmoney, Alasdair Macleod, believes China’s hidden gold could amount to 20,000 tons, more than double what the United States has.