Chinese state media reported on Thursday that “Chinese commerce officials have been intensively meeting representatives from the U.S. business community and academia” — and pressuring them to meddle in trade talks with the Trump administration on behalf of Beijing’s interests.
China’s state-run Global Times put a happy face on this blatant effort to use Beijing’s economic leverage to affect U.S. government policy, burbling about China’s “opening-up commitment” and desire for a “stable, healthy, and sustainable bilateral relationship.”
“Chinese commerce officials’ intensive exchanges with U.S. business and academic representatives send a signal of China welcoming American companies to expand in the China market,” China Society for World Trade Organization Studies vice-chair Huo Jianguo told the Global Times.
The Chinese Communist paper spun China’s disappointing second-quarter economic report as evidence of “robust” and “high-quality” development. It also touted the list of American companies attending the China International Supply Chain Expo (CISCE) — including big names like Nvidia, Apple, and Tesla, the latter of which manufactures electric vehicles for the European and Asian markets at its “gigafactory” in Shanghai.
One of the biggest stories in international trade over the past few years has been the global movement to “de-risk” supply chains by moving them away from China whenever possible, but the Global Times quoted Chinese academics insisting that “a company can only achieve globalization by having businesses in the large Chinese market.”
Another Global Times article hinted that American soybean farmers should pressure the Trump administration to make a favorable deal with Beijing if they want to keep the soybean gravy train rolling.
The Global Times noted that China is the largest importer of American soybeans, accounting for over 40 percent of U.S. exports, but maybe not for much longer:
Since 2018, in response to US tariff measures, China has moved to diversify imports of soybeans and other staple crops to bolster food security and reduce reliance on any single source. As a result, the share of U.S. soybeans in China’s import mix has declined, with Brazil emerging as the top supplier, said Xu Shiwei, secretary-general of the market early warning expert committee of the Ministry of Agriculture and Rural Affairs, the Beijing News reported.
According to [Greater China Regional Director of the U.S. Soybean Export Council Zhang Xiaoping], the share of US soybeans in the Chinese market has declined from a peak of around 60 percent to roughly 22 percent at present. He attributed the shift to both market-driven changes and what he described as “non-market factors” that can’t be ignored.
Despite recent declines in US soybeans’ market share in China due to tariffs and other non-market factors, Zhang told the Global Times the trend is temporary. “Market forces are powerful. Once trade returns to its fundamentals, U.S. soybeans remain highly competitive,” he noted.
The Global Times congratulated American soybean farmers for “bringing certainty amid geopolitical uncertainty” by opposing U.S. tariffs on Chinese goods.
China is looking at an August 12 deadline to make a trade deal with the United States or incur tariffs that could exceed 100 percent. Beijing is not-so-subtly reminding American exporters to think about where their bread (and soybeans) are buttered as the clock ticks down.
Commerce Minister Wang Wentao told reporters on Friday there have been “ups and downs” in the negotiations, and while he warned China will “protect its national interests,” he sounded mildly optimistic about progress toward a deal.
“As the dust settles, everyone has come to the conclusion — especially the U.S. side — that forced decoupling is impossible,” Wang said.
“Both sides have come to understand that they need each other, as lots of the goods and services that we exchange are irreplaceable, or at least difficult to exchange in the short-term,” he added.
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