US imports to China's food and energy sectors are deemed unnecessary, states an official.
China's food and energy security won't crumble if it cuts ties with the U.S., insists Chinese official
In the face of an escalating trade war, China remains confident about preserving its food and energy security. Zhao Chenxin, deputy head of the National Development and Reform Commission, asserted this during a press conference, saying that "The Chinese people's rice bowl is firmly held in their own hands."
Before the tariff war, America was a major exporter of Agriproducts, fuel, hi-tech goods like semiconductors, and aircraft to China. However, trade essentially ground to a halt as a result of the tariff war.
Zhao stressed that China has significantly diversified its food and energy imports, ensuring that U.S. grains, such as sorghum, corn, and soybeans, only account for a small portion of its total grain consumption. Most of these imports are destined for animal feed, not the food industry.
"These products are highly replaceable, and the international market has abundant supplies," Zhao insisted. He further added that China has sufficient grain reserves to tide over any potential shortages.
While energy-specific details aren't widely discussed, the National Development and Reform Commission has emphasized China's ability to maintain a stable energy supply due to its global partnerships. Historically, China has increased energy imports from sources such as Russia, Central Asia, and the Middle East during trade tensions.
During the press conference, Zhao also highlighted China's efforts to bolster its domestic agricultural sector. Trials for genetically modified (GM) corn and soybeans began in 2021, aiming to boost yields. Additionally, anti-food waste laws enacted in 2021 and updated food security legislation prioritize staple grain self-sufficiency.
As geopolitical risks rise, Beijing is focusing on building a diversified food supply system. Soybean and pork exports from the U.S. to China have plummeted as substitutions speed up due to the 145% U.S. tariffs on Chinese goods and reciprocal Chinese tariffs. These tariffs have significantly cut bilateral trade.
- Despite the tariff war, China has demonstrated confidence in maintaining its food and energy security, with Zhao Chenxin asserting that the Chinese people's food supply is secure.
- Before the trade war, China was a significant importer of American agriproducts, including rice, semiconductors, and fuel, but has since diversified its food and energy imports to ensure a small portion of its grain consumption comes from the U.S.
- Zhao emphasized that many of the imported American grains are intended for animal feed, not human consumption, and that the international market offers abundant replacements for these products.
- In an effort to reduce dependence on foreign imports, China is working to bolster its domestic agricultural sector, including trials for genetically modified corn and soybeans, and enacting anti-food waste laws and updated food security legislation.
