Food Reserves + Tencent in the Metaverse

China’s vast food reserves prove to be the Communist Party’s secret weapon against inflation. They were created to ensure a steady supply of food in the event of crop failures, and that is precisely the function they currently perform after the record drought. But by allowing state planners to keep supplies high in times of crisis, they also curb price fluctuations, analyzes Ning Wang. China has the world’s largest food stockpiles including wheat and pork.

However, if the world continues to experience extremely dry weather year after year, then even the high reserves will no longer be of any use at some point. At the height of the Covid pandemic, President Xi Jinping already proposed a solution: China’s citizens should eat less. Those who waste food will be fined. In case of doubt, however, China will once again buy on the world market – and drive up prices in other regions.

Meanwhile, visionaries of the so-called metaverse are designing a brave new world of a different kind. The term describes a virtual reality in which we humans lead a second life in digital space in the form of avatars. Once it is finalized, the Metaverse will primarily be a new economic space. Companies and individuals will be able to invest, buy, sell and earn money for services here. That China will also follow its own approach here seems likely. The gaming and social media giant Tencent in particular has the know-how to create its own parallel online world. The company from Shenzhen will probably set standards early on, reports Frank Sieren. However, unlike in the past, Beijing will know how to undermine monopolies at an early stage. China is already setting narrow limits for the digital space of tomorrow.

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Fabian Peltsch