Beijing/Washington: China has alleged that the US Sorghum exported to China is given subsidy and the same is being ‘Dumped’ in China. China has ordered investigation against this US policy. The analysts have warned that this is a part of the ‘US-China Trade War’ and this conflict will only worsen.
Last month, the US President Donald Trump had strongly promoted his ‘America First’ policy and had also announced trade restrictions on China. Trump had taken the decision to heavily tax the ‘Solar Cells’ and ‘Washing Machines’ imported by China as a part of these restrictions. Before that, President Trump had also ordered investigation into the malpractices in the Chinese trade.
China had criticised this action and had said that it will take the necessary steps to safeguard its own interests. The announcement by the Chinese Ministry of Commerce looks to be a part of it. ‘There is prima facie evidence that the US Sorghum imported by China has been heavily subsidised by the government. It is also evident that the Chinese producers have been severely affected by this’, was said while announcing the investigation.
The US has increased the export of Sorghum to China after the year 2013. The Chinese commerce ministry has also claimed that nearly 50% of the total US Sorghum produce has been exported to China. As per the information given by the Chinese customs administration, in the year 2017, the US had exported nearly 48 hundred thousand tonnes of Sorghum to China, valued at about $ 1 billion.
This investigation of the US Sorghum has been ordered with the objective of increasing pressure on President Trump. The major support for Trump comes mainly from the states like Kansas and Texas, which happen to be the leading producers of Sorghum. China may take about a year to complete the investigation but this could affect the export of Sorghum. It is believed that this can displease the Trump supporters creating pressure on him.
Soybean and Sorghum form the major chunk of the exports from US to China. China has imported roughly $ 14 billion worth of Soybean from the US, in the year 2016. This is not the first time that China has initiated an investigation into the US products. Prior to this, China had threatened to ban the ‘Poultry’ imported from the US in the year 2010.