According to a report on April 21, China has stopped making advance purchases of US - produced soybeans and corn since mid - January. While reducing imports of agricultural products and resources from the United States, to ensure a stable supply, China has increased purchases from countries such as Brazil.
An investigation into the advance purchase situation of soybeans and corn by foreign enterprises announced by the US Department of Agriculture shows that China's purchases have been zero since January 16 this year.
The country that has replaced the United States as China's procurement source is Brazil. Mauricio Bove, the president of the Brazilian Association of Soybean Producers, revealed in an interview that in one week in early April, China signed purchase contracts for at least 2.4 million tons. This is an unusually large - scale contract, equivalent to about one - third of China's normal monthly processing volume.
After the trade war during Trump's first term, China has reduced the proportion of soybeans imported from the United States. In 2017, US - produced soybeans accounted for nearly 40% of China's total imports, but by 2024, this proportion has dropped to 20%. The proportion of Brazilian - produced soybeans has reached 70%, up from 50% in 2017. It can be said that China has improved its ability to withstand the pressure of Sino - US tariff competition.
Hideo Hattori, the chief grain analyst at a Japanese company, said: "Compared with US - produced soybeans, Brazilian - produced soybeans have lower price increases and supply risks, so the demand is higher."
The sense of crisis among American farmers is growing. Caleb Ragland, the president of the American Soybean Association, urged the Trump administration in a letter to negotiate and reach an agreement with China as soon as possible.
During the previous trade war, the US agricultural sector suffered losses of $26 billion and lost a lot of market share in China. Ragland said: "US agriculture is weaker than it was during Trump's first term."
