Recently, a delegation composed of political and business leaders from the U.S. Midwest arrived in China and held meetings with Chinese representatives, discussing Sino-U.S. economic and trade relations as well as economic and trade cooperation between U.S. states and Chinese provinces.

It is worth noting that the special identity of this U.S. delegation gave this dialogue an additional layer of significance.

After all, the U.S. Midwest is the core area for the production of U.S. soybeans, corn, and other agricultural products, and it is also the main force behind U.S. agricultural exports.

Currently, it's the fall harvest season for U.S. soybeans. Reuters previously reported that as the world's largest buyer of soybeans, China hasn't purchased any new U.S. soybeans this year, which has made U.S. agricultural groups very anxious.

In the past, the U.S. was China's largest soybean supplier, and a lot of soybeans in the Chinese market came from the U.S. However, as the trade friction between the two countries escalated, China imposed tariff countermeasures, forcing U.S. soybean farmers to watch helplessly as American soybeans were pushed out of the Chinese market.

More importantly, China had already prepared itself and gradually adjusted its soybean supply chain.

Customs data provides the most direct evidence: In the first eight months of this year, China purchased a total of 73.312 million tons of soybeans. In just August alone, China imported 12.279 million tons, a record high compared to the same period last year.

Among this large import volume, Brazil accounted for the majority, with over 85% of the soybeans coming from Brazil. Just in August, Brazil supplied 10.49 million tons of soybeans to China, an increase of 2.4% compared to the same period last year.

This is not only due to Brazil's bountiful harvest providing a supply advantage but also because China actively chose to diversify its supply chain to hedge against trade uncertainties.

Facing the strong competition from Brazilian soybeans, the situation for U.S. soybeans has become increasingly "awkward." Recently, U.S. agricultural groups have repeatedly called on the Trump administration to quickly reach an agreement with China.

It is against this backdrop that the U.S. Midwest political and business delegation's visit to China carries a clear intention of "promoting cooperation and seeking orders."

However, China's position has always been clear.

On September 23, even Brazilian journalists couldn't resist their curiosity and proactively asked the Chinese side about the news, asking whether the Sino-U.S. economic and trade negotiations would include increasing the purchase of U.S. soybeans, i.e., whether China would buy U.S. soybeans.

Face with this question, China's spokesperson Guo Jia Kun responded with precision, without directly answering, but first said, "For specific situations, please consult the relevant authorities."

Subsequently, he clearly pointed out the key issue: Waging a tariff war and engaging in trade confrontation benefits no one. If both sides want to solve the problem, they must sit down and talk on the basis of equality, respect, and mutual benefit.

The implication is clear: For U.S. soybeans to get orders from China, it won't work by just having the delegation come under the guise of "seeking cooperation" and making polite speeches. They need to return to the cooperative track of not engaging in trade wars first. Moreover, soybean purchases are essentially a market behavior.

The Brazilian journalist's question probably also carried an observation: If the U.S. and China really agree to buy more U.S. soybeans, will Brazil's share in the Chinese market be affected?

But one thing needs to be clarified: Any cooperation must be based on equality and mutual benefit. It cannot be that one party imposes its demands while the other must compromise. Such cooperation is neither sustainable nor in line with market rules.

China and Brazil's soybean cooperation can become more stable and reliable because both sides respect each other and seek mutual benefits.

Although China's demand for soybeans is objective, procurement choices are always based on quality, price, and supply chain stability.

The U.S. wants China to buy American soybeans. The key is not to rely on the delegation's "lobbying," but to show sincerity so that Chinese buyers are willing to choose and feel confident purchasing them.

In short, for the U.S., instead of relying on political means, it should face the needs and rules of the Chinese market, win back the trust of Chinese consumers with competitive products and a pragmatic attitude.

Original article: https://www.toutiao.com/article/7553481859804430875/

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