US Protectionism Threatens China Agricultural Ties: What It Means for Global Investors and Agribusiness Owners
BEIJING — The US protectionist policies are severely impacting agricultural cooperation with China, Beijing’s ambassador to Washington warned, emphasizing that farmers should not suffer the consequences of the ongoing trade dispute between the two largest economies.
“It is evident that protectionism is widespread, casting a significant shadow over China-US agricultural collaboration,” stated Xie Feng, according to a transcript of his recent speech published by the Chinese embassy on Saturday.
Agriculture remains a critical point of friction as the United States and China continue their tariff conflict initiated under President Donald Trump. In March, China imposed tariffs of up to 15% on $21 billion worth of American agricultural and food products in response to sweeping US tariffs. Earlier this month, both countries agreed to a 90-day truce, temporarily preventing the imposition of triple-digit tariffs on each other’s goods.
US agricultural exports to China have plummeted by 53% in the first half of 2025 compared to the same period last year, including a 51% drop in soybean exports, Xie revealed during an address at a soybean industry event in Washington on Friday.
“American farmers, like their Chinese counterparts, are hardworking and humble,” Xie remarked. “Agriculture should not be politicized, and farmers must not be forced to bear the burden of the trade war.”
The ambassador highlighted agriculture as a key area for cooperation and a foundational aspect of bilateral relations. He noted that China has a comparative advantage in labor-intensive agricultural products, while the US excels in mechanized, large-scale production of land-intensive bulk commodities.
Last month, US Agriculture Secretary Brooke Rollins announced plans to restrict farmland purchases by what the administration terms “foreign adversaries,” explicitly naming China among them. Concurrently, the US Department of Agriculture terminated 70 foreign contract researchers following a national security review aimed at protecting the US food supply from threats purportedly posed by China, Russia, North Korea, and Iran.
Xie dismissed these security concerns, pointing out that Chinese investors own less than 0.03% of US agricultural land. He questioned the credibility of claims that China threatens US food security, labeling the restrictions as “political manipulation.”
Meanwhile, US soybean exporters face the risk of losing billions of dollars in sales to China this year as prolonged trade negotiations lead Chinese buyers—the world’s largest soybean importer—to increasingly secure shipments from Brazil for delivery during the critical US marketing season, industry traders noted.
— رويترز
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The ongoing US-China agricultural trade tensions highlight escalating protectionism risks for global supply chains, potentially disrupting commodity prices and trade flows. For Omani businesses, this underscores the importance of diversifying import sources and tapping into emerging markets like Brazil to mitigate supply disruptions. Smart investors should consider agriculture-related opportunities in countries benefiting from shifting trade patterns and remain cautious of geopolitical risks influencing global agriculture markets.
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