Could China strangle Europe’s weapons output with cotton?
- Europe has complained about China’s supply of nitrocellulose, known as guncotton, but experts say Europe would rather not ramp up production
In early May, a chemical plant in China’s central Hubei province exploded, killing three people. The culprit was nitrocellulose, a highly flammable material made from cotton. The plant belonged to Hubei Xuefei Chemical, China’s second largest producer of nitrocellulose.
And within days, the accident in Laohekou city had triggered a buying spree of shares in North Chemical Industries – China’s top producer of the material – as rumours over the tightening supply and soaring market demand of the compound ran high.
Investors pointed to the rising demand to Europe, which has been struggling to deliver weapons to Ukraine, with nitrocellulose a key input for making propellant powder used in firearms and artillery- a characteristic that gives the compound its alternative name of “guncotton”.
In the past months, European politicians and arms producers have complained that China – a major producer of nitrocellulose – has or at least could cut its supply, which has impeded their ability to supply weapons to Ukraine amid its ongoing conflict with Russia.
While industry insiders acknowledged there is indeed space for China to manoeuvre in terms of the direction of the flow of nitrocellulose for geopolitical considerations, they rejected the accusations, saying that Beijing could not strangle the supply chain if Europe was willing to ramp up production on their own.
Would you know it, deliveries of this cotton from China stopped as if by chance a few months ago
