China houses the biggest population in the world and the country has worked on different projects to address this challenge. More infrastructures are built to provide shelter for the Chinese nationals and as a result, there can be limited lands that would develop crops and the agricultural industry. This leads to the option for China to import sources of food from other countries. The US has been a close tie regarding trade in agriculture since both have been working together for decades already.
China is a huge consumer of soybeans and recently, the US is additionally providing rice for the country. Although China is capable of producing around 20 times of what the US is exporting, the ratio does not suffice with the amount that the country is consuming. China needs about 5 million tons but the US is only capable to export between 3-4 million tons.
Before, China was able to cater to all its need when it comes to rice production. The demand, however, of importing from other countries says otherwise. There have been more challenges in Chinese agriculture such as population, low crop yields, and soil depletion. Also, the climate and the pollution give additional difficulty in maintaining to grow agricultural produce.
Currently, there are some issues to be tackled by the US and China regarding trade policies but both is still continuing business and exchanges in products. Particularly, the trade deficit is being handled by the continued efforts to fill in the gaps between the two. Also, there have been eyes on the quality of the products that are manufactured, traded back and forth, with China and the US. These have been taken into consideration and measures have been done for the importing of rice.
China wanted the best quality of rice by having facilities that would check and regulate the shipments to the country while being efficient and quick. Consequently, this is a huge opportunity for the US rice industry and the standards have been set and that these are protected from certain pests that can be acquired during the shipment. The agreement itself gives a positive effect for the US since the market shows potential and further growth. As long as policies on quality, pest control, and other related factors are addressed properly, this trade can go long-term not. China’s interest in American rice opens possibilities for other countries to import from the US as well.
China and US trade has been well tested by time. History stands as a witness for the long ongoing bilateral trade between the two nations. Even during the Sino-Japanese War, the Chinese and Americans were having business relations. The Nanjing Massacre in China also happened in the duration of the war and the two nationalities were greatly affected. China’s economy experienced one of its worst but the country was able to stand up after decades and with the economic reforms. The US was also hands on in terms of reaching out to China in times of distress. However, being the two most powerful, the processes are not quite easy to deal with. The US has long been the greatest economy while China is making an effort to overthrow the former.
With the rivalry aside, the demand for rice import of China from the US is beneficial to both sides. It helps the economy of the US while bringing in more opportunities for supplying rice to other countries. On the other hand, China will be able to suffice the need for rice among its people. Working between two powerful countries seems to be inevitable and new policies must be implemented to ensure the interest and security of each.