As part of its growing efforts to expand its global power, China, the world’s second biggest economy, says it wants to develop its raw-material markets as world hubs for setting prices, in an effort to, among other things, gain much more power in determining how much commodities cost. Of course, having control over commodities and commodities pricing has geopolitical-security implications too.
“We’re facing a chance of a lifetime to become a global pricing center for commodities,” Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the Shanghai Futures Exchange’s annual conference in the city on Wednesday. “On the way to realize this goal, we’ll see very intense competition. We have the advantage of trading size and economic growth, but our legislation is still not sound and we lack enough talent.”