China and the US have been in the top economies for the longest time. Although China still considers itself as a developing country, its rise has been unusual in the global market. The two nations clearly have their own resources but when the need arises, trade is considered. As a matter of fact, China has been importing huge volumes of resources from the US and it reflects the benefits to their economy. The increase in trade between China and the US can be traced down to the wealth that the Chinese consumers possess and the strength of their currency against the dollar.
Specifically, China imports aluminum, organic chemicals, and copper from the US to support their technology production advancements. Also, China continues automobile trade even though the country is able to manufacture different brands of cars. Consequently, semiconductors, computers, and machinery are still being shipped from the US. Aside from these commodities, China is big on importing oil and their most needed product is soybeans.
The demand of China for soybeans is huge and the US is its biggest distributor. China requires 89 million tons of soybeans for the years 2017-2018 and this will be holding the record of the highest quantity that is expected to be imported. The US has adjusted to a number of requirements from China through increasing crop production and expanding the lands to develop the plants. This gives them the pressure to cater to all the needs of not only China but the other countries who import as well. The forecast for the soybean exports of the US is aggressive and is continually increasing for the next years. If this pushes through, there will be exponential growth for the supply needed and is definitely greater as to its starting amount.
China imports soybeans to use its oil extracts as well as to feed their farm animals. The crop is used to sustain their farming methods so as to provide essential products that their people consume. The country has focused on maximizing their available lands to produce wheat and rice which are most important to them. This gave China the option to import the product rather than domestically developing it given that they don’t have much land that can be used. Also, importing soybeans costs cheaper that having the crop in their land. It is a matter of strategizing for China and the US has greatly benefited from it.
China and the US have truly evolved their bilateral trade since the Chinese economic reforms began. It was triggered by the Sino-Japanese war when the Rape of Nanking marked the history due to the violence of the Japanese military. The act was against the Chinese and American civilians staying in the Safe Zone in Nanking, China. From there, the US and China have long been in relations. Trade was performed during this time and until now; certain products are exported to China from the US and vice versa.
History has shown how essential trade is to a country and how other factors are dependent on it. The largest economies in the world happened to be the biggest exporter of soybeans from the US to China and this shows good numbers to the economy. The battle for hegemony has always been up and is continuing between the two.
Though the two nations remain civil, this calls for proper execution of policies and agreements to maintain their bilateral relationship trade relationship. In this trade of soybeans particularly, the US must deliver the entire amount of the agreement. Knowing that China’s demands are not little to consider, the US must secure their position as exporter since there are other countries who are able to do the same.