U.S. exports of soybeans, sorghum, and pork to China have stagnated, according to data released by the U.S. government on Thursday, Aug. 8.
The Commerce Ministry announced this week that purchases of U.S. products by Chinese companies had been “suspended,” Reuters reported.
U.S. producers are currently only shipping orders that have already been placed: about four tons of soybeans and 103,500 tons of pork.
China bought 60,000 tons of wheat, 50,000 tons of sorghum and 1,350 tons of pork in the week ending Aug. 1, according to weekly U.S. Department of Agriculture (USDA) data collected by Reuters.
The data also confirmed a new purchase of about 71,200 tons of soybeans, a minimum quantity that was agreed during the brief negotiation held in Shanghai by senior officials from both countries.
This movement demonstrates once again the tight control that the Beijing regime exercises over every movement of Chinese companies and highlights the lack of commercial freedom in the Asian giant.
President Trump announced last week that he will impose 10% tariffs on the 300 billion Chinese products remaining to be taxed as of Sept. 1.
In response to this and again showing that the Chinese Communist Party (CCP) does not respect the rules of the international monetary game, the Bank of China announced a historic and artificial drop in the value of its currency, the yuan, to try to cushion the impact of these new tariffs.
President Donald Trump already addressed U.S. farmers on Tuesday assuring them that the aggressive measures that China was taking against their country’s agriculture “will not hurt them” and that if necessary he will give them his support in 2020.
China does not respect the game rules
Experts explain that since China joined the World Trade Organization (WTO) in 2001, the Chinese Communist Party (CCP) has not respected the rules of the game.
Beijing has been systematically using the international market, under the complacent gaze of previous U.S. administrations and the European Union, to create an exponential growth of its economy to become the second world power, explains expert Michael Pillsbury in his book “The Hundred-Year Marathon.”
In this moment of bilateral relations between the two world powers, the Trump administration considers that Beijing has broken its last two promises.
Both were formulated during the meeting between Donald Trump and Xi Jinping, leader of the CCP, during the G-20 in Argentina in December.
The Chinese leader pledged at that meeting to buy an “amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance” between the two countries, a White House statement announced.
The statement also announced that Beijing was committed to controlling and reducing the amount of fentanyl, a destructive drug that is causing a serious health crisis, which enters massively into the United States from China.
Both promises have not been fulfilled. Experts quoted by the South China Morning Post said that given the lack of transparency of the Chinese economy and Beijing’s long history of not keeping its promises, monitoring compliance with commitments can be ‘painful.’
“In many areas, implementation will be extremely difficult, if not impossible,” said Stephen Olson, a former U.S. trade negotiator who is now a member of the Hinrich Foundation.
For this reason, they suggest changing the traditional WTO trade arbitration system, which procedures are long and have proven to serve the Chinese regime to avoid the consequences of its breaches for years, to a much faster and more agile system, snapback.
This unilateral verification system would make it possible to periodically review whether China is maintaining its side of any agreement.
Seven Deadly Sins of China
There are many reasons that the Trump administration claims to have for imposing tariffs on the Chinese regime.
According to White House adviser Peter Navarro, in an interview with journalist Chris Wallace on “Fox News Sunday,” the Chinese communist regime is guilty of seven deadly sins:
- Stealing intellectual property
- Forcing technology transfer
- Hacking to steal state secrets
- Unfair competition in the markets, forcing the closure of North American companies
- Granting huge subsidies to their companies, something prohibited by the WTO
- Exporting fentanyl, a potent illegal drug that has created an epidemic of death and addiction in the United States
- Manipulating their currency artificially
However, all these strategies that the Chinese regime has been using for 30 years could also have a perverse effect on its own economy, experts warn.
“A weaker currency could prompt wealthy Chinese to shift their money out of the country, as nobody wants to hold investments in a currency that is losing value. It could dampen the spending power of Chinese consumers at a time when Beijing needs them to keep buying to bolster economic growth,” The New York Times explained.