Donald Trump may be out of the White House but the trade war with China is not exactly over.
So, is a new White House any reason to think things between the U.S. and China might get better soon?
Not in the short run says Wendong Zhang, an Iowa State ag economist and China native.
“We are seeing quickly deteriorating relationships,” he says. “There’s a growing concern that, from the Chinese business perspective, we are anticipating a bumpy relationship over the next decade.”
“There’s a growing concern that, from the Chinese business perspective we are anticipating a bumpy relationship over the next decade,” says Chinese native and Iowa State ag economist Wendong Zhang.
China has been trying to avoid being too dependent on a single supplier – namely the United States - since our 2012 drought.
“Changing climate patterns in Russia and continued deforestation in Brazil make soybeans from those countries much easier for the Chinese to source, especially after the past four years,” notes Farm Futures market analyst Jacqueline Holland.
In the 2008 financial crisis the U.S. and China worked together to solve problems; during this pandemic “we didn’t see much cooperation between these countries -- mainly bickering over origins of COVID, and other issues related to Hong Kong and intellectual rights,” Zhang adds.
What about Phase one?
Hold on a minute, you say. What about the recent surge in corn and soybean sales? China is working to satisfy its commitments in the Phase one trade deal, right?