US Protectionism Threatens Agricultural Ties with China
The Chinese ambassador to the US has expressed concern that American protectionist policies are damaging agricultural cooperation, emphasizing that farmers shouldn’t suffer due to the escalating trade tensions between the two largest economies.
Back in March, China responded with $21 billion in taxes on US agricultural and food products to counteract US tariffs.
Recently, Washington and Beijing decided to extend a 90-day ceasefire, complicating the exchange of goods between both nations.
In a speech delivered at a soybean industry event in Washington, Ambassador Xie Feng highlighted a sharp decline in US agricultural exports to China, which plummeted by 53% compared to the same time last year, with soybeans alone down by 51% in the first half of the year.
“American farmers are just as hardworking and humble as their Chinese counterparts,” Xie remarked. “Agriculture should not become a pawn in political disputes. It’s unfair for farmers to bear the costs of a trade war.”
The ongoing tariff conflict, initially ignited by former President Trump, has turned agriculture into a pivotal issue in US-China relations.
Xie pointed out that agriculture represents a significant opportunity for collaboration, serving as a “pilot of bilateral relations.” He noted that while China has advantages in labor-intensive farming, the US excels in producing large-scale commodities.
Last month, US Agriculture Secretary Brooke Rollins announced plans to limit farmland acquisitions by “foreign adversaries,” including China.
In addition, the USDA has dismissed 70 foreign contract researchers after a national security review aimed at protecting US food supplies from perceived threats, which includes nations like China, Russia, North Korea, and Iran.
Xie cautioned that rising protectionism would overshadow agricultural collaboration. He questioned US claims that foreign investments threaten national food security, stating that Chinese investors own a mere 0.03% of US farmland, and labeled US restrictions as “political manipulation.”
As trade discussions continue, US soybean exporters face the risk of losing billions in sales to China this year. Meanwhile, Brazilian oilseed suppliers have secured shipping contracts just as the critical US marketing season approaches, complicating matters further.
