What is the reason behind the end of a new round of trade negotiations between China and the United States and the re-import of American soybeans by Chinese companies? When Trump had no time to celebrate, what happened that made him bad?
Two days ago, China and the United States held a new round of trade negotiations, and after the end of the negotiations, foreign media exposed news that Chinese companies bought three batches of U.S. soybeans. This undoubtedly led to the reversal of China's cancellation of U.S. soybeans orders.
The first is that Sino-US trade negotiations have reached a consensus, and China has shown sincerity in improving the trade situation between the two countries.Since Trump came to China to launch the tariff war, China canceled the US soybeans order, and the United States has also turned from the previous largest soybeans supplier to China to a country with zero soybeans exports. This undoubtedly puts domestic farmers under great pressure. In the face of the domestic soybeans delay, Trump had to scream to China and want to resume soybeans trade, but since he asked for China, the United States must also meet the conditions of China. This is why soybeans trade between China and the United States has been interrupted for several months. That before the US-China meeting, the Chinese enterprises began to import American soybeans, undoubtedly released a signal that the outcome of a new round of China-US negotiations exceeded expectations. This just explains an old Chinese saying, "You respect me a foot, and I respect you a foot". China's mutual benefit and win-win results are the "master key" to ease relations in state-to-state exchanges.。
The second is that from China’s own interests, we need to import U.S. soybeans. After rebuilding the soybeans supply chain in China, Brazil has become the largest supplier of soybeans to China. Here there is a problem, when China increases the import of soybeans from Brazil, it will give its own farmers an illusion that Brazil’s position in China’s soybeans supply chain is irreplaceable. So, there is a situation where Brazilian soybeans start to sit down. According to the media news, compared to the beginning of this year, Brazil’s soybeans export prices have risen by 80%. This is equivalent to Brazil’s “fire robbing” against China, if China still chooses to tolerate continued import of Brazilian soybeans, it will inevitably damage its own interests. Then China will need
It must be said that China's trick is a double arrow. and, we also need to note, this imported soybeans was shipped in December and January of next year.In other words, China has reserved a time difference for itself. If the United States goes back on its word and disobeys China during this period, China may cancel its soybean orders from the United States again. More importantly, while opening up the import of American soybeans, China has not changed its position on military rare earth exports. What do you mean? China still holds the trump card of the game against the United States. But in any case, the new round of trade negotiations between China and the United States is undoubtedly good news for Trump. However, before he could celebrate, another piece of bad news came.
Recently, the U.S. Senate vetoed the Fiscal Year 2025 Continuing Appropriations and Extensions Act with a vote of 45 people, which means that the U.S. federal government will continue to shut down. This kind of result is actually not surprising. Because the bill needed 60 votes in the Senate to move forward, at this time, Senate Democrats began to play a role. Because during the U.S. election process, the Democratic Party and the Republican Party were at odds. After Trump won the election and became the new president of the United States, he not only overturned many documents signed by Biden, but also tried his best to suppress Democrats. At this time, when Trump needed Democratic votes for support, Democratic lawmakers became stumbling blocks on the way to passage of the bill. They’re trying to counter the Republicans in this way, lowering Trump’s polls, and getting the Republicans to compromise with the Democrats.
I have to say that the current United States is in a mess at home. When Sino-US negotiations achieve certain results, it will only be a slight comfort to Trump. After all, if the general direction of the United States 'strategy towards China does not change, the Sino-US game will not change much. Therefore, Trump should understand that if he wants to solve the problem, having a good dialogue with China is the only answer. The specific action depends on his next actions.