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China's trade pattern in agricultural commodities follows its
comparative advantage: it tends to import land-intensive commodities
(soybeans, cotton, barley, rubber, and oils made from soybeans
and palm kernels), and it exports labor-intensive commodities (fish,
fruits, vegetables, and processed agricultural goods). China is
also a major exporter of corn in most years.
In 2008, China's agricultural
imports totaled an estimated US$57 billion and its agricultural
exports totaled US$29 billion. The value of China's agricultural
imports rose sharply in 2008 due to sharply higher oilseed prices
and a surge of pork imports to alleviate a temporary shortfall
in domestic supplies. Grain exports were cut back in 2008 as authorities
sought to cool rising domestic prices, and other food exports were
affected by safety concerns in Japan and other countries.
Historically, the United States has supplied a significant (although
varying) portion of China's imports of soybeans, cotton, and wheat.
Bilateral agricultural trade in 2008 consisted of US$12.2
billion in U.S. exports to China, and US$3.4
billion in imports from China. The United States is a net
exporter of bulk commodities (primarily soybeans and cotton)
to China. The leading markets for China's agricultural
exports are Japan, the United States, Hong Kong, and South Korea.
The United States imports fish and shellfish, juices, garlic,
mushrooms, and various processed foods and food ingredients from
China.
Major Player in World Markets
China has often been a major player in international markets.
It has been a major source of growth in world demand for soybeans
since the mid-1990s. Soybeans now account for more than
half of the value of U.S. agricultural exports to China.
 d
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PNG. Sudden and dramatic policy shifts, and their subsequent
effect on China's international trade profile, make the country
a relatively volatile player. In 1994 and 1995, China abruptly
increased its grain imports and cut off corn exports as concerns
about grain shortages and inflation became widespread. China
stopped importing wheat and boosted grain exports from 1997 to
2003. In 2008, China cut off grain imports, temporarily cut tariffs
for some products, and imported vegetable oil and pork to add
to government reserves as officials sought to slow rising food
prices.
 d
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a PNG. China's government exerts control over trade of grains and other
key commodities through state-owned trading companies, import/export
quotas and licenses, export taxes, temporary tariff reductions,
sanitary and phytosanitary measures, tax waivers, and subsidies.
China's accession to the World Trade Organization (WTO) in December
2001 reduced the government's control of trade. A series of WTO
commitments required China to cut tariffs, reduce the monopoly
power of state trading monopolies, eliminate export subsidies,
give equal treatment to imported and domestic products, publish
and seek comments on all trade regulations and base phytosanitary
rules on science. These commitments increased the role of market
forces in shaping China's agricultural trade, but policies continue
to influence trade as well.
Statistics
References
See briefing room readings page for ERS reports on China
agricultural trade.
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