China Report Issue 48 May 2017

(coco) #1

F


armers in the US plan to expand their soybean planting in
2017, and China will increase its soybean imports by 1 mil-
lion tons in the marketing year starting from September 1,
2016, according to forecasts by the US Department of Agriculture
published in March and April. Its statistics showed that China was
the top export market for the US agricultural products in 2016, with
soybeans making up 66 percent.
Meanwhile, Oy Roberts Ab, a Finnish family enterprise that makes
jams and ingredients for baked goods, has recently invested almost
US$3 million to expand its production lines in Finland to meet the
rising demand from Chinese consumers. It expects more coopera-
tion with its Chinese partner on marketing and technology. Sophie
Zhang, chief representative of the Shenzhen-based Nordic Trade
House Finland, a Finnish trade promotion agency in China, told
ChinaReport that their member enterprises like Roberts are eager to
tap more business opportunities in China. Her office represents more
than 6,000 SMEs from the West Coast of Finland, along with Finn-
ish government trade and investment promotion agencies, trade as-
sociations and universities.
The significance of these two examples lies in something more than
food. The political dynamics behind them are different, yet connect-

ed in some way. More troubled trade relations between China and
the US have been expected for some time. It is believed that China
can use US agricultural products, either soybean or beef, as a deter-
rent and buffer to prevent the escalation of tension in trade. It is also
advised that China seek new trade partners not only to resist US pres-
sure, but also to increase its say in the world economic governance.
There are signs that China is trying to do so.
A China-US trade war seems, at least, no longer imminent after
the first meeting between Chinese President Xi Jinping and the US
President Donald Trump at the Mar-a-Lago estate in Florida on April
6 and 7 local time. A 100-day trade negotiation plan, agreed during
the meeting, was described by the US Secretary of Commerce Wilbur
Ross as “a very, very important symbolisation of the growing rapport
between the two countries” in Florida on April 7. President Trump
himself told the Wall Street Journal on April 12 that China was “no
longer” manipulating its currency to boost its exports. As a result of
Xi Jinping’s first visit to Northern Europe as president, from April 4 to
6, China and Finland have declared that they will expand cooperation
on an array of areas, including food, agriculture technology, innova-
tion and clean technology.
Trade has been listed as one of the most likely triggers of China-US

Xi-Trump Summit


in Defence


China has tools and options to defend


itself not only from a trade attack by the


US if it flares up, but also from the retreat


of economic globalisation. China’s own


openness is helpful in preventing the


former, and crucial in making a difference


in averting the latter by winning over


more partners


By Li Jia


Chinese President Xi Jinping and his US counterpart Donald Trump hold the second
round of talks of the Mar-a-Lago resort in Florida, US, April 7, 2017

Photo by xinhua
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