U.S. soybeans have occupied a high share of China ’s imports for a long time before, and the United States has also invested a lot of money in China.
However, due to the recent unreasonable demands of the United States, China may cut off US soybean imports. In the eyes of some Americans, China will suffer huge losses because China cannot find a substitute for US soybeans, and restricting US soybean imports will also increase the prices of Chinese cooking oil and pork.
The supply of grain to China has increased by 5 times! Russian soybean has become China's "new favorite"
However, this is an arrogant and naive idea. As soybeans from South America such as Brazil and Argentina enter the Chinese market, their share is also increasing; at present, Brazil has successfully surpassed the United States and has become the first source of soybean imports in China. In addition, China is also trying to "open up new paths", and has now found a new source of soybean imports to reduce its dependence on US soybean imports.
Recently, Russian Minister of Agriculture Alexander Tkachov said to the outside world that based on the signing of a protocol on phytosanitary requirements for the export of Russian wheat, corn, rice, soybeans and rapeseed to China, Russia ’s food supply to China has increased over the past year 5 times. This means that, in accordance with this trend, combined with the advantages of geography and transportation safety, Russia will likely become China's most potential soybean supplier in the future.
American soybean substitute China: It is actually very easy to find!
Indeed, the trade in agricultural products between China and Russia has developed quite rapidly in recent years. According to data released by Russia, China ’s grain imports from Russia reached 712,400 tons in 2017, a 4.5-fold increase compared to 2014, and imports also increased from grains and their products to soybeans, flaxseeds, and rapeseeds.
And this also caused anxiety in the United States. The US Department of Agriculture believes that the dependence of Russian grain exports on the Chinese market will threaten the US and even many markets in the world.
It is worth noting that Russia ’s soybeans achieved a “bumper harvest” last year, with a record output of 3.6 million tons and a total supply of 5.7 million tons. In addition, Russia ’s domestic food consumption has not been large in recent years, so it has been exported in large quantities. According to this trend, to a certain extent, if China cuts off US soybean imports, there is no need to worry about the "granary" behind it.
In contrast to the United States, China ’s reduction in the purchase of soybeans will inevitably lead to an increase in the ending inventory of soybeans in the United States, and the scale of the United States ’“ circulation ”will also shrink, and the United States’ import and export trade will also be hit hard. This series of chain reactions has also caused a pandemic in the United States, but many Americans have expressed frustration. After all, all of this is Trump's responsibility.
