US-China trade negotiations have been going on for a long time now. Agreements are made then broken by one side or the other. Neither China nor the US can be said to the onlooker to be particularly committed to trade agreements between the two countries. What’s the evidence for this statement?
US-China Trade Issues
There is a definite trade disagreement between the US and China. Otherwise why has China slowed its imports of US corn? It is believed by many that the reason for the significant slowdown in the purchase of US corn by China is a worry on China’s part. Donald Trump might bring the corn supply situation into the trade disagreement between these two world superpowers! There are no doubts that US-China trade is in a state of disarray and at the hands of two very powerful but egotistical individuals.
Some Specific US-China Trade Issues
Some Chinese buyers of American corn have canceled multiple shipments of US corn and instead switched to Ukrainian corn. The major reason for this appears to be connected with the fact that much American corn is genetically modified. The trade issues between the two countries might have had nothing to do with this decision. However, it may have been the catalyst that instigated it.
Many people dislike the concept of genetically modified foodstuffs. That is not to suggest that the Chinese are unaware of genetically modified foods they are. In 2016 China banned the cultivation of GM foods for 5 years. The only GM food allowed in China is papaya (pawpaw). There is only one other genetically modified crop permitted to be grown in China: cotton. Hence China’s reluctance to accept GM corn.
US-China Issue Must be Resolved
As with all such issues involving a combination of trade and international diplomacy, economics will likely prevail. Both countries must come to an agreement shortly, or otherwise, it may lead to a nasty situation that could affect the dollar rate. The Trump administration is currently discussing these issues in Washington with a Chinese delegation.
A trade war between two of the world’s largest countries is not good for world economic stability. Individual egos should not become involved in international commerce and politics – but that is the way it has always been. Neither Donald Trump nor Xi Jinping is known for their capitulation on matters important to them. Time will tell.