Agricultural trade helps stabilize China-US relations

Editor's notes: Liu Hongru is a research fellow at the Institute of International Economics, China Agricultural University; and Li Chunding is head of the Economics and Trade Department, China Agricultural University. The article reflects the authors' opinion and not necessarily the views of CGTN.

In recent years, the relationship between China and the US has been in a relatively tense state and trade frictions have been constant. However, the structure of agricultural trade between the two countries show strong complementarity, and the trade exchanges and communication between the two sides have become more frequent. 

Strengthening cooperation in agricultural trade between China and the US is expected to become a breakthrough in the resolution of bilateral trade disputes and a booster for the stabilization of relations between the two countries.

Highly complementary agricultural products between China and the US

As two "superpowers" in the production and consumption of agricultural products worldwide, China and the US have demonstrated both obvious competition and strong complementarity, constituting a unique landscape of agricultural trade relations between the two countries. 

China, with its large population, limited arable land resources and relatively under-developed agricultural production technology, faces huge challenges in the demand for agricultural products. With the continuous contradiction between the supply and demand of agricultural products, China should make full use of the international market to alleviate the pressure of growing domestic demand. At the same time, the US, with its huge production scale, efficient agricultural technology and rich export experience, occupies a pivotal position in international agricultural trade. 

The interaction between China and the US in the field of agricultural trade goes beyond the economic interests of the two countries themselves, but has a far-reaching impact on the stability and development of the global agricultural market.

In the first half of 2024, the US was China's largest agricultural export market and the second largest agricultural import market. From the product structure of bilateral trade, agricultural trade between the two countries has strong complementarity. 

China's agricultural exports to the US are more concentrated, mainly in labor-intensive products, such as aquatic products and horticultural products. US agricultural exports to China are mainly land-intensive products, such as grains, feed and meat. Among them, soybean plays an important role in the agricultural trade between the two countries. The stability of the soybean supply chain is of strategic significance to the agricultural development and economic stability of the two countries. In recent years, China's soybean imports have continued to grow, and China and the US have huge potential for cooperation in the field of soybean trade.

Deepening agricultural trade cooperation between China and the US

In recent years, China and the US have had frequent trade exchanges in agricultural products, with communication and exchanges between the two sides increasing markedly, and the agricultural trade partnership strengthening. In 2023, Chinese Ambassador to the US Xie Feng attended the China-US Sustainable Agricultural Trade Forum and delivered a keynote speech, further consolidating the role of agricultural trade as a ballast in China-US economic and trade cooperation.

During the just-concluded China International Import Expo (CIIE), exhibitors in the US Pavilion successfully signed cooperation agreements with a total contracted amount of over $711 million, breaking last year's record of $505 million, with a year-on-year increase of 41 percent. 

At the China-US Agricultural Trade Cooperation Forum held during the same period, representatives from both China and the US expressed strong intentions for cooperation. The multi-billion-dollar contract-signing ceremony proved that continuous agricultural dialogue and communication between China and the US is effective, and that trade and cooperation are necessary for both sides. 

China and the US continue to achieve breakthroughs in the field of agricultural trade, which has a far-reaching impact on the resolution of bilateral trade frictions, and at the same time, plays an important role in stabilizing and consolidating the relationship between the two countries.

Future outlook: seeking common interests for mutual development

The world today is undergoing a major change not seen in a century, but peace and development remain the theme of the times. China and the US have been through thick and thin in economic and trade relations. Due to the highly complementary economic structures, deeply intertwined national interests, and the close ties in bilateral trade and economic cooperation, the two sides have been able to find opportunities for co-operation, endeavoring to achieve common ground while preserving their differences. 

Rather than a zero-sum rivalry, the China-US relationship is a mutually beneficial and win-win partnership. At a time of transition in US leadership, the new administration should work collaboratively with the Chinese government and people. By adopting a mutually beneficial approach to global economic development, the two countries can ensure stable economic and trade relations. Both sides should shoulder their responsibilities as major global powers, mitigate the negative impacts of trade friction, and facilitate broader economic cooperation that benefits all nations, particularly in terms of global food security and agricultural price stability.