China is actively reducing its dependence on US grain supplies

After the trade war that began during Trump’s first term as president, China began to reduce its dependence on American agricultural products to ensure its own food security.

Then Trump imposed an import duty on Chinese goods worth $370 billion, and China responded by imposing a 25% duty on US goods worth more than $100 billion, including soybeans, wheat, corn, sorghum, and pork.

The share of soybeans from the United States (the traditional supplier of this product to China) in China’s total soybean imports decreased from 40% in 2016 to 18% in 2024, as soybean supplies from Brazil increased, replacing the United States as the main supplier of corn.

In 2022, China imported $43 billion worth of agricultural products from the United States, in 2023 – $34 billion, and in 2024 it will further reduce purchases. Currently, the country is diversifying its sources of agricultural supplies and stimulating its own production.

In August 2019, China stopped buying agricultural products from the United States after Trump imposed duties. In January 2020, the two countries signed a trade agreement under which China promised to increase purchases of American goods by $200 billion over two years, including agricultural products by $32 billion. However, in February 2022, the United States said that China had not fulfilled this agreement, as it had purchased only $19 billion worth of agricultural products from the United States.

In 2021, China began commercially growing GMO soybeans and corn, and passed a law to combat food waste to reduce grain losses. Since February 2022, it has allowed the import of wheat and barley from all regions of Russia, and since May – the import of corn from Brazil.

And on March 7, 2022, Xi Jinping said that “the country must fully provide itself with its own rice, otherwise it will be controlled by others, so food security is a strategic issue.”

In June 2022, China passed a law on soil protection, as decades of industrialization and excessive use of pesticides in some provinces led to soil degradation and reduced yields.

Since April 2023, to reduce soybean consumption, China has decided to reduce the content of soybean meal in animal feed from 14.5% in 2022 to 13% by 2025, and launched pilot projects to use leftover food and animal carcasses in feed.

On May 4, 2023, China authorized genetically edited soybeans, which, unlike GMO soybeans, do not contain foreign DNA but manipulate their own genome to improve yields. In December, the first 26 seed companies were issued licenses to produce and sell GMO soybeans and corn. Since May 2024, imports of GMO corn from Argentina have been allowed and the safety of GMO wheat has been approved.

On April 9, 2024, the country launched a campaign to increase grain production by more than 50 million tons by 2030, and in 2023 it already harvested a record 695.41 million tons of grain, and in 2024 it plans to receive more than 700 million tons.

In June 2024, China adopted a food security law aimed at achieving independence in grain and food production. It obliges local governments to include food security issues in their economic and strategic plans.

Since October 2024, the country has launched an action program for 2024-2028 aimed at accelerating the development of smart agriculture to increase food production.

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Tags: China, corn, grain, soybean, USA