Beijing and Washington: A New Era for American Agricultural Business

Increased Deals at CIIE for U.S. Agricultural Sectors

Agricultural firms from the U.S. reported signing major deals at the world’s largest trade fair in Shanghai, maintaining growth for soybeans and sorghum exports to China even after a White House power transfer in January.

• 31 American companies signed deals worth $711 million with Chinese buyers during CIIE.
• Deal value increased by 41% from last year.
• AmCham Shanghai’s president emphasized the importance of agricultural products in bilateral trade.

Ongoing Engagement Between U.S. and China

Business discussions are set to continue over the next year, likely yielding larger transactions. Last year, deals signed at CIIE totaled $505 million and led to an additional $3 billion in purchase orders.

• The USDA and AmCham Shanghai co-hosted a pavilion featuring produce from California, Idaho, and Georgia.
• Despite fears of a trade war escalating under Donald Trump’s renewed presidency, there are bright spots in the economic relationship.

The Role of Soybeans in Trade

As the largest market for American farm goods, China remains reliant on soybeans, deemed high-quality and low-priced. The ongoing relationship between the two economies may stabilize trade moving forward.

• 25% tariffs on American agricultural produce have been in effect since 2018.
• In 2023, the value of U.S. agricultural exports to China decreased by 24% to $29.1 billion.

Global Trade Dynamics at CIIE

The CIIE aims to showcase China's commitment to free trade while emphasizing the significance of partnerships in agricultural and other sectors. `Wayne Shi`, President of Sanofi’s Greater China operations noted, “CIIE is crucial for showcasing global innovations.