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US–China Trade: Sell US Soybeans—and Get Played

As American farmers eagerly prepared to sell their soybeans to China, they were met with an unexpected twist in the ongoing US–China trade war. Despite initial promises of increased purchases, China has failed to meet its commitments, leaving US soybean producers in a state of uncertainty and disappointment.

One key factor contributing to this issue is the volatile nature of the US–China trade relationship. The trade war, which started in 2018, has led to unpredictable trade policies and tariffs, making it difficult for farmers to gauge the demand for their products in the Chinese market. This uncertainty has resulted in decreased sales and profitability for American soybean producers.

Additionally, China has been able to exploit its position as a major importer of US soybeans to its advantage. By making inconsistent promises and changing trade policies at will, China has been able to manipulate the soybean market in its favor, leaving American farmers at a disadvantage.

Furthermore, the trade war has had broader implications for the US economy as a whole. The decline in soybean exports has had ripple effects on other industries, leading to job losses and decreased economic growth. In order to mitigate these negative impacts, the US government must work towards a more stable and fair trade relationship with China.

In conclusion, the current state of US–China trade has had significant consequences for American soybean producers. It is crucial for policymakers to address the issues at hand and work towards a more stable and equitable trade relationship with China in order to support the livelihoods of American farmers and promote economic growth.

I have a bad feeling about the U.S.–China trade negotiations. One gets the impression President Donald Trump is so keen for a deal that he’s walking into trouble.
One thing China is playing him on is soybeans. Trump has called for a fourfold increase in Chinese purchases of U.S. soybeans. However, the Chinese aren’t buying and instead are purchasing soybeans from the Brazilians, who, according to reports, can meet China’s entire demand.

But I’ll bet Beijing eventually “concedes” on soybeans and agrees to buy a lot of American ones.

One trade expert told me: “I am reasonably confident that—thanks to that other export to us, Salt Typhoon (PRC government-backed hackers)—the Chinese knew the administration would make this ‘demand’; Beijing might have even ‘incepted’ the idea and then spun up the soybean industry to lobby for it.”

Chinese trade warfare has indeed successfully influenced U.S. soy farmers, making them totally dependent on China.

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Grant Newsham

Grant Newsham, Author

Grant Newsham is a retired U.S. Marine officer and a former U.S. diplomat and business executive with many years in the Asia/Pacific region. He is a senior fellow with the Japan Forum for Strategic Studies (Tokyo) and Center for Security Policy and the Yorktown Institute in Washington, D.C. He is the author of the best selling book “When China Attacks: A Warning to America.”

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