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The Case for Healthy U.S.‐China Agricultural Trade Relations despite Deglobalization Pressures

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  • Zhang, Wendong

Abstract

The COVID‐19 pandemic is crippling the global economy and heightening distrust and political disagreements among major countries. Furthermore, ongoing deglobalization efforts taken by firms and countries are fueling the rise of economic nationalism. A prime example is the possible decoupling of US–China economic and trade relations, which the ongoing trade war has already significantly disrupted. This paper analyzes the impacts of COVID‐19 on US agricultural exports to China, especially the added delays and uncertainty regarding China's food imports meeting the US–China phase one trade deal target. I present the views of US farmers and the general public toward China and argue that healthy US–China agricultural trade relations are not only critical for both countries but welcomed by US farmers. I also discuss the possible rise in nontariff barriers following the pandemic as well as trade policies that are increasingly intertwined with political tensions. Finally, I discuss how the US–China phase one trade deal could possibly lead to a more balanced bilateral agricultural trade portfolio with greater share of protein and retail food products.

Suggested Citation

  • Zhang, Wendong, 2020. "The Case for Healthy U.S.‐China Agricultural Trade Relations despite Deglobalization Pressures," ISU General Staff Papers 202010130700001624, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genstf:202010130700001624
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    1. Bhaskar, Arathi & Beghin, John C., 2009. "How Coupled Are Decoupled Farm Payments? A Review of the Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), pages 1-24, April.
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    5. Edward J. Balistreri & Wendong Zhang & John Beghin, 2020. "The State-level Burden of the Trade War: Interactions between the Market Facilitation Program and Tariffs," Center for Agricultural and Rural Development (CARD) Publications apr-winter-2020-1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    8. Xi He & Dermot J. Hayes & Wendong Zhang, 2021. "China's Agricultural Imports under the Phase One Deal: Is Success Possible?," Center for Agricultural and Rural Development (CARD) Publications 20-pb29, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. Coppess, Jonathan & Schnitkey, Gary & Zulauf, Carl & Swanson, Krista, 2019. "The Market Facilitation Program: A New Direction in Public Agricultural Policy?," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 9(220), November.
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    11. Edward J. Balistreri & Chad E. Hart & Dermot J. Hayes & Minghao Li & Lee Schulz & David A. Swenson & Wendong Zhang & John M. Crespi, 2018. "The Impact of the 2018 Trade Disruptions on the Iowa Economy," Center for Agricultural and Rural Development (CARD) Publications 18-pb25, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    Cited by:

    1. Li, Haoran & Wan, Xibo & Zhang, Wendong, 2020. "How do Firms Respond to Political Tensions? Evidence from Chinese Food Importers," ISU General Staff Papers 202011250800001118, Iowa State University, Department of Economics.
    2. Li, Haoran & Wan, Xibo & Zhang, Wendong, 2021. "How do Firms Respond to Long-term Political Tensions? Evidence from Chinese Food Importers," ISU General Staff Papers 202106020700001118, Iowa State University, Department of Economics.
    3. Chandio, Rabail & Katchova, Ani & Giri, Anil K. & Subedi, Dipak, 2023. "Impact of interest rate changes and government payments on farm operation's debt," 2023 Annual Meeting, July 23-25, Washington D.C. 335958, Agricultural and Applied Economics Association.

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