May 01, Kathmandu- The trade war between the US and China is starting to look real. In particular, an American cargo ship had already reached the middle of the sea near China and was about to reach a Chinese port shortly after, but China did something that caused a stir in the entire world trade.
The ongoing trade war between the US and China is now well known. It is likely to have a major impact not only on these two countries but also on other countries in the world.
It has been reported that China has returned shipments from the US via the Mediterranean Sea and canceled all its orders. These ships were loaded with soybeans, the consignment of which was to be supplied to the Chinese market. This supply order was also placed by China itself, but in the middle of the sea, it suddenly ordered the exporter to cancel the order and refused to ship.
China has not only canceled shipments of soybeans from the United States, but has also started buying Brazilian soybeans instead of buying them from the United States. This move by China is being seen not only as a trade war but also as a deliberate strategic move. Its immediate and serious impact is being seen in the United States.
According to the US Department of Agriculture, US soybean stocks have risen by 13 percent since the cancellation of shipments. American farmers are calling it not a trade war but a conspiracy of economic isolation.
It's not as if China has suddenly canceled US shipments and even turned to its alternatives. China has already strengthened its agricultural infrastructure in Brazil and has developed a strategy to restructure the global food supply chain.
The extent to which China has made progress in this trade war can be gauged by the fact that it has begun auctioning off corn it buys from the United States. To this end, it has used non-tariff barriers to circumvent World Trade Organization rules.