They’re the two largest economies in the world: the U.S. and China. Despite ongoing attempts at talks with the country, the White House has not been able to foster a secure trade relationship.
In 2022, China became North Dakota’s second-largest export market, according to the U.S. China Business Council. That’s up from the number four spot in 2021.
“They are a big buyer of our soybeans domestically. Their basis bids for us determine whether our prices are reasonable compared to what the Midwest gets or are deflated, because if we can’t sell beans to China through the Pacific Northwest, then we have to send them east down the Mississippi. Then, it costs more. The farmers have to absorb that cost, lowering their return,” said Eugene Graner, president of Heartland Investor Services.
However, commodity experts say it’s not a straight path forward, and North Dakota could come out on top — at least for now.
During the trade war under the Trump Administration, China was able to secure soybeans from South America. Now, expert opinions point to North Dakota being in a more favorable position, even if the two nations don’t reach an agreement.
“Argentina just went through a drought. The U.S. is having trouble with Midwestern production for total supplies. Now, we’re seeing Brazil will start planting its new crop this fall of soybeans, but they’re in a dry period and they’re going to delay their planting for quite some time. China might have no choice but to buy soybeans from North Dakota,” said Graner.
North Dakota trade to China supported 10,670 American jobs in 2021.
Thursday, President Biden left for the G20 summit in India, where NBC political analysts say his focus will be on strengthening economic and security partnerships to counter China.
Source: KFYR TV