U.S.-China Ag Industry Summit Strengthens Farm Trade Amid Political Strains
Beijing welcomed representatives from the U.S. agriculture industry on Thursday as they gathered to meet with their Chinese counterparts. This meeting comes at a time when efforts to enhance farm trade between the two countries are intensifying, despite the ongoing political tensions. The delegation, comprising 11 groups including the U.S. Soybean Export Council, U.S. Grains Council, and U.S. Wheat Associates, arrived just a week after Chinese grain buyers signed non-binding agreements in Iowa to purchase billions of dollars worth of agricultural produce, primarily soybeans. This signing marked the first such agreement since 2017.
Relations between the United States and China have been strained over recent years, and the COVID-19 pandemic added further complications, including travel restrictions and border controls. However, the timing of this visit holds significance, as it aligns with the anticipated meeting between President Xi Jinping and President Joe Biden in San Francisco later this month.
Among the attendees at the summit, Nicholas Burns, U.S. ambassador to China, emphasized the importance of the agricultural sector in the bilateral relationship, stating, We’ve got a big complicated relationship, but agriculture is the ballast in the relationship. This sentiment reflects the role of agriculture as a stabilizing force between the two nations.
Furthermore, officials from the U.S. Grains Council raised concerns during their visit to China’s commerce ministry regarding China’s anti-dumping and anti-subsidy measures against U.S. imports of distillers dried grains (DDGS). DDGS is a protein-rich byproduct derived from ethanol production, commonly used as animal feed. The council suggested engaging with the domestic industry in China to garner support for this product. They also noted that China recently dropped an anti-dumping case against Australian barley, potentially signaling hope for a favorable outcome in the U.S. DDGS case.
Notably, oilseeds and grains rank as the top U.S. exports to China, amounting to $25.4 billion last year, surpassing other goods such as semiconductors. However, Brazil has gradually been gaining ground in the Chinese market, particularly after abundant soybean and corn harvests. In an effort to diversify import sources, China opened its market to Brazilian corn late last year. Consequently, China’s imports of Brazilian soybeans have increased by 18% in the first nine months of this year compared to the same period last year, while U.S. arrivals witnessed an 8% rise. Chinese imports of Brazilian corn have also been substantial, with approximately 4 million tons already received and more expected.
The delegation visiting China represents the largest industry group since 2016. Their itinerary includes Shanghai, where they will participate in the upcoming China International Import Expo. For the first time since its inception in 2018, the U.S. Department of Agriculture will host a pavilion at the event. This presents a valuable opportunity for U.S. agricultural representatives to showcase their products and foster closer cooperation with Chinese partners.
All eyes are now on the U.S.-China relationship as both countries aim to strengthen trade ties, particularly in the agriculture sector. Despite the numerous challenges and strained political landscape, this Ag Industry Summit serves as a testament to the significance of agricultural trade as a stabilizing force in the overall relationship between the United States and China.
