- It seems they need the pork and soybeans
- Bad news for Democrats counting on their philosophical brothers resiliency
- Dems really don’t want to see even the potential for Trump winning on trade
- Dems no doubt asking “Why couldn’t they have waited for 14 months”, starving people never inhibited their policies before, and it won’t inhibit ours.”
LA Times: China adds soybeans, pork to tariff exemptions before U.S. talks (excerpt)
The Chinese government is growing increasingly concerned about soaring prices and their potential to mar celebrations for the 70th anniversary of the People’s Republic of China’s founding on Oct. 1. China is hoping to import 2 million tons for the year, some of which would be added to state reserves, according to people with knowledge of the plans.
China bought about a million tons of pork so far this year, of which 87,771 tons were from the U.S., according to Chinese customs data. Even if purchases tripled, imports would only make up about 6.6% of domestic supply, Citigroup Inc. said in a report on Thursday. The world’s biggest consumer of pork accounted for about half of global demand last year, while it produced about 54 million tons, Citigroup said.
More imports are only going to go part of the way to address shortages. The country is likely to see a 10-million-ton pork deficit this year, more than the roughly 8 million tons in annual global trade, according to Vice Premier Hu Chunhua. That means the country will need to fill the gap by itself, he said.
Now we may have written a few times calling on all concerned about trade deficits and cheating China, to give Trump the support to hold fast. But an element in this state, centered in certain ag association lobbyists, are not seriously concerned about the nation’s trade deficits with China or their thievery or threatening hegemony, as much as they are concerned with the smoothness of their own China deals and damn manufacturing here, and damn intellectual property because they consider their industry above it all.
The economics are clear – Trump USA holds the best hand to, with determination, obtain much better results with China on matters of trade and intellectual property and currency manipulations than we ever insisted on before, benefits resounding to all business sectors here and increasing our national security. Just criticizing China or asking them to play nice has not worked. Generating a successful tide toward honest freer trade has necessitated using the club of responsive tariffs used against us to make bad actors sit up and take notice and honestly negotiate. It is a process necessary in this world particularly with the likes of China and it can lead to freer trade that will raise all boats helping the world economy.
And the truth is as far as the ag sector, markets for ag products will stabilize world-wide no matter what unless people stop eating. It is a world market not just a China market. Patience farmers, tell your association spokesholes to show prudence in their advocacy as you do in your business decisions. Keep your eye on the big picture and this country will continue to help you toward a new normalcy of freer trade benefiting all.