China facing soybean dilemma as it tries to balance phase one trade deal with self-reliance
- China currently imports more than 80 per cent of its soybeans, but there are growing concerns regarding its food security as the relationship with the US becomes volatile
- As part of the phase one trade deal with the US, China agreed to buy an additional US$32 billion in agricultural goods over the next two years
China’s demand for soybeans is expected to rebound in 2020 but the question remains where the supply will come from as it attempts to move away from over reliance on imports but also meet its commitments under the phase one trade deal with the United States.
There are growing concerns regarding China’s food security as the relationship with the US becomes volatile, and since the beginning of the trade war, China has been reinforcing self-reliance on its industries including manufacturing and food production.
Gu Zhenchun, a deputy with the Standing Committee of the National People's Congress representing Heilongjiang province, told the state-owned People’s Daily on Monday that the northeastern region must find and research new sources to replace soybeans and cut import reliance.
Substituting for imported soybeans to reduce import dependence has become the focus for government departments and researchers
The northeast region of China, which is made up of the provinces of Heilongjiang, Jilin and Liaoning, along with Inner Mongolia, produces 26 per cent of China’s soybean crop.