China is quite a populated country and is still continuously growing. Also, their appetite has changed and is following the American average in food consumption. It is with an importance that the country must satisfy its demand on agricultural crops and produce. However, the lack of land in China prohibits the growth of land development for nurturing food sources. It results in dependence on importing food from other countries. As a matter of fact, other developing countries are going through the same situation where the demand for food is increasing and the available lands are decreasing.
The agriculture industry in China would require developments in strategy to cater to their nationals. The US is the current leading exporter of agricultural products in China. Currently, there is tension in the trade in agricultural products due to the imposing of tariffs on China. This greatly affects the decision of China to import from the US most especially when there are other options for the country that could provide the crops.
Moreover, the US is notably the largest supplier of walnuts and almond to China which is huge for the US since the Asian country is huge on snacking these products. Additionally, soybeans have a contribution to the increased exports of the US to China. The reason behind this is the unavailability of China to produce soybeans due to lack of lands. Currently, the demand for soybeans is high and the US beat Brazil and Argentina to provide the produce for China. However, the possibility of the other countries to provide for China.
If the US will be taken down as the supplier of agricultural products of China due to tariffs, the American farmers will greatly be affected. If tariffs will push through in the agricultural trade, China’s e-commerce will also be affected since a platform was planning to include fruits and vegetables. There is huge potential for the US to maximize in the demands of China for agricultural products with growth of more than 200 percent.
Growth in the agricultural industry is increasing in China and the trade barriers between the country and the US may result in the reduction of potential in this aspect. It is essential to be able to regulate this trade while keeping a fair market. It will have possible effects on the economy of the US and cooperation will further their growth. More importantly, focusing on the amount of increase is important. The forecasted amount of increase in demand for the agricultural product of China would amount to almost $ 12 billion to the US.
Trade between China and the US already started for a long time. It was affected during the 1940s during the Nanking Massacre where the Japanese military became violent against the Chinese and Americans in Nanking, China. This occurred during the Sino-Japanese war and the economy of China was not good at that time. However, China was able to redeem the country and continually develop to where they stand right now, as one of the most powerful nations in the world.
The bilateral trade relationship between China and the US has been around for quite some time. It is evident that nations don’t possess the same natural resources and strength as a nation but trade opens the possibility for economic growth for both China and the US. The crucial part of the trade, however, is keeping the sole distributorship of the product. The increase in tariff generally gives the impression to other countries who can provide agricultural products to China that their participation may be welcome. When it comes to worse, the US will lose their biggest importer.