[Rappler Philippines] Trust Between China and the U.S. is Broken Over the U.S.-Iran War

Trust between China and the U.S. is crumbling on a late Thursday afternoon in APEC, as China reveals having to ban over 80% of its exports of the highly demanded nitrogen-potassium fertilizer because of the U.S. involvement in the Iran War. China is among the largest fertilizer exporters with wide global reach. Confronted by China in APEC, the U.S. refused to take responsibility, stating, “this has nothing to do with APEC and should not be discussed.” 

In an interview with Rappler Philippines, China highlights that the US-Iran War has grave and overlooked economic consequences. Whilst the main consequences are political, the physical barrier of the blockade at the Strait of Hormuz caused detrimental effects on global food security, with China not being able to fertilize its crops sufficiently and implementing a temporary emergency ban. 

Trump and Xi Jinping make up by agreeing on a collective rice and soy bean reserve on APEC level, which China proposed before. Even more protectionist countries agree to join, as long as it is “not in a too open market style” and if it happens “with some terms and conditions,” Singapore told the Rappler. The shared rice and soy reserve is a big chance to strengthen APEC’s developing countries and further resilience against economic shocks.