China buys U.S. soybeans again, and Raimondo has changed the degree: China is not an American friend.
Introduction. The economic and trade relations between China and the United States have undergone great changes recently. Raimondo of the U.S. Department of Commerce once again issued a harsh criticism, saying that it would contain China in the advanced semiconductor industry, and warned its chip companies not to give their production and technology to China. Raimondo said China is not an ally of the United States. Interestingly, China National Grain Reserves Corporation also bought 600,000 tons of soybeans from the United States last month. Although four years ago, that number was small, today American newspapers see it as a ray of light for American agricultural products.
The situation and development trend of agricultural commodity trade between China and the United States.
1. Motivation and effect of investment in Brazil.
As the United States restricts China's development of chips, China has decided to fight back with agriculture as an example. Since 2019, China has slashed its imports of agricultural products from the United States, such as soybeans, corn, beef, and instead exported to Brazil. China, the world's largest consumer of soybeans and the world's largest bean trader, has made significant imports to Brazil. This change caused a large number of U.S. farmers to go out of business, and U.S. agricultural exports such as soybeans and corn fell to their lowest level in 30 years.
2. The economic and trade development process of China and the United States.
The economic and trade relationship between China and the United States has recently undergone a certain transformation. China and the United States have expressed their views on the disputes in the Pacific region, and the position of the United States has also changed. Indeed, the U.S. has a presence in China in many areas, such as the U.S. debt crisis, the manufacturing crisis, and what Raimondo said about the sanctions imposed on the Chinese economy. Under Raimondo's warning, American-funded semiconductor companies such as Nvidia and Qualcomm have a very urgent need for China, and have repeatedly asked the Biden administration to say that sanctions against China can only accelerate China's breakthrough in science and technology, and only by working together is a win-win situation.
China has restarted its purchases of U.S. soybeans.
1. U.S. expectations for agricultural products.
Last month, China Grain Reserve Corporation made large-scale purchases of U.S. soybeans, adding a glimmer of hope to U.S. agricultural exports. Although the purchase amount is not large, it has a positive effect on farmers in the United States. For the United States, China is the world's largest importer of soybeans, and its potential is high. So China's resumption of soybean purchases in the U.S. is a major sign that the U.S.-China relationship is easing.
2. Changes in the pattern of agriculture between China and the United States.
China's choice of Brazil, and now it is buying U.S. soybeans, is a sign that the landscape of the U.S. and Chinese agriculture trade is changing. China used to be the largest exporter of U.S. agricultural products, such as soybeans and corn, but as the dispute between the two countries has intensified, China has expanded into other markets and reduced its dependence on the United States. This change has had a big impact on farmers in the United States, and it has also given China more flexibility in agricultural exports, allowing it to better protect its agricultural production.
Lessons learned from China's re-importation of soybeans from the United States.
1. Attach great importance to domestic agricultural security.
China has resumed buying soybeans from the United States, which can not only solve the problem of agricultural consumption in China, but also ensure the stability of China's agricultural production. In the face of uncertainties in the world economic situation, China must ensure sufficient agricultural supply in order to ensure people's food security. This requires China to find a balanced balance between the domestic and international markets to ensure a stable agricultural supply and high-quality agricultural supply.
2. Look for diversified business cooperation.
China's dependence on Brazil and its renewed purchase of U.S. soybeans show that China is looking for a diversified partner. In the past, China relied heavily on China for agricultural imports from the United States, making it passive in economic and trade conflicts with China. In order to reduce its dependence on the single market, China is actively looking for agricultural supplies from other countries and building a diversified pattern.
Brief summary. Recent Chinese imports to the United States have given a glimmer of hope for U.S. agricultural exports. At the same time, there have also been some signs of loosening in economic and trade exchanges between China and the United States. However, China's agricultural exports to Brazil and its re-purchase of U.S. soybeans suggest that China is committed to finding diversified ways to work together to secure its agricultural production. For China, this is a major shift in its strategy and a manifestation of its independent development. If China wants to maintain steady economic growth in an uncertain world, it must establish a strong and reliable partner with it.