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China's trade pattern in agricultural
commodities follows its comparative advantage: it tends to import
land-intensive commodities (grains, soybeans, cotton) and export
labor-intensive commodities (fish, fruits, vegetables, poultry,
and processed agricultural goods). China is also a major exporter
of corn. In 2006, China's agricultural imports totaled an estimated
US$30.6 billion and its agricultural exports totaled US$20.9 billion.
Most of its exports go to neighboring countries in Asia.
Historically, the United States has supplied a significant (although
varying) portion of China's imports of soybeans, cotton, and wheat.
Bilateral agricultural trade in 2006 consisted of US$6.7
billion in U.S. exports to China, and US$2.3
billion in imports from China. The United States is a net
exporter of bulk commodities (primarily soybeans) to China.
The United States
is a net importer of fish, forest products, vegetables, and various
processed foods 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 about half of U.S. agricultural
exports to China.
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.
China's government exerts control over trade of grains and other
key commodities through state-owned trading monopolies, import
quotas and licenses, 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 have reduced the role of government policies
and increased the role of market forces in shaping China's agricultural
trade.
Statistics
U.S.
agricultural exports to China, by commodity
U.S.
agricultural imports from China, by commodity
China
Trade, 1995-2002 is a U.S. Department of Commerce report with
statistics on China's trade in all commodities.
References
See briefing room readings page for ERS reports on China
agricultural trade.
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