The Trouble with China - NCBA's Kent Bacus Supports Washington's Game of Hard Ball with BeijingFri, 12 Oct 2018 11:14:37 CDT
It has been obvious that China, down through the years, has been a very tough customer to deal with when it come to agricultural exports. In the case of beef, we have only just returned to the Chinese market after being shut out since the Cow That Stole Christmas in 2003 about one year ago. Kent Bacus with the National Cattlemen’s Beef Association said in a recent conversation with Radio Oklahoma Ag Network Farm Director Ron Hays that he fully understands what the Trump Administration is trying to accomplish in the trade war it has been waging against China- attempting to force China’s leaders to the negotiating table in an effort to even the economic playing field between the two nations. He says the use of tariffs, although not necessarily a pleasant one, has nevertheless delivered results in the past.
“It worked with Korea’s threat of withdrawing from our trade agreement. It brought Mexico to the table to renegotiate. It’s brought the Canadians to the table,” Bacus said. “With China, the US has already targeted about half of the $500 billion worth of goods we import, and China is feeling the pain. So much to the point that they’re actually scrambling to find ways to keep their currency from sliding even further.”
China has naturally responded in kind with its own tariffs levied against US goods. Based on his knowledge of the situation, Bacus is not sure that the White House will ease up on this trade war any time soon, at least not until China seriously considers making some real systemic changes to their state-run economy. In the end though, he believes both countries will eventually come together to repair trade relations and economic ties.
“China has a lot to lose here and they have a lot more to lose,” Bacus said. “I think tariffs will be effective to a point and the Administration will continue to use that leverage until China agrees to make some major changes. I think at the end of the day, both countries want to find a mutually beneficial path forward. When that happens is anyone’s guess, but we’re hoping it’s sooner rather than later.”
Listen to Bacus and Hays speak about the trouble with China and his take on the ongoing trade war, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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