How China minimised US farm imports and sharpened its trade war tactics

China has reduced its dependence on US farm imports, strengthening its trade war strategy through supply diversification, local production boosts, and food security policies

Ever since the US and China entered a tariff dispute during Donald Trump’s first term, China has sought to reduce its reliance on US agricultural imports as part of a broader strategy to strengthen its food security.

 

As a result, China now has greater leverage over the billions it continues to spend on US farm products, allowing it to use trade as a bargaining tool in a potential second Trump administration with a reduced risk to its food supply, news agency Reuters reported.  

 

China’s finance ministry on Tuesday announced plans to impose additional tariffs of 10 per cent to 15 per cent on various US agricultural goods, including soybeans, corn, dairy, and beef, in response to the latest round of US tariffs imposed by Trump.  

 

 

Below is a timeline of China’s initiatives since the trade dispute began, aimed at diversifying its agricultural supply chains, increasing domestic production, and strengthening food security:  

 

>August 5, 2019: China suspends purchases of US farm products in retaliation against US tariffs.  

>January 16, 2020: Trump and then-Vice Premier Liu He sign the ‘Phase 1’ trade deal, in which China commits to increasing purchases of US goods by $200 billion over two years, including $32 billion in agricultural products.  

>2021: China begins commercial trials for genetically modified soybeans and corn.  

>April 29, 2021: A new anti-food waste law is implemented to curb grain wastage, prohibiting binge-eating videos and excessive food disposal.  

>February 1, 2022: A US trade official said that China did not meet its obligations under the Phase 1 deal, which expired in late 2021. Agriculture Secretary Tom Vilsack reports a shortfall of approximately $13 billion in China’s farm product purchases.  

>February 4, 2022: China permits wheat and barley imports from all Russian regions, bolstering ties with the world’s top wheat exporter.  

>March 7, 2022: President Xi Jinping stresses the importance of food self-sufficiency, warning that if China cannot secure its own food supply, it risks external dependency.  

>May 25, 2022: China expands agricultural trade by allowing Brazilian corn imports.  

>April 14, 2023: To reduce reliance on soybean imports, China introduces a plan to cut soymeal use in animal feed to below 13 per cent by 2025, down from 14.5 per cent in 2022. It also explores microbial proteins and alternative feed sources such as food scraps and animal remains.  

>May 4, 2023: China approves its first gene-edited soybean variety, a step toward improving yields. Unlike traditional genetically modified organisms (GMOs), gene editing modifies the plant's existing genome without introducing foreign DNA.  

>December 26, 2023: The Chinese government grants licenses to 26 companies to produce and sell genetically modified corn and soybean seeds in select provinces.  

>April 9, 2024: China launches an initiative to increase grain output by over 50 million metric tonnes by 2030.  

>May 28, 2024: China approves imports of two genetically modified corn varieties from Argentina, the world’s third-largest exporter of animal feed grains.  

>June 3, 2024: The country’s first food security law takes effect, aiming for ‘absolute self-sufficiency’ in staple grain and food production. The law mandates that both central and provincial governments prioritize food security in their economic policies, including protecting farmland from non-agricultural development.  

>October 25, 2024: China launches a 2024-2028 action plan to accelerate smart farming and precision agriculture to boost food production.  

>November 2024: Between January and November 2024, China's agricultural imports from the US declined by 14 per cent year-over-year to $26 billion, marking a second consecutive year of reduced trade.  

>November 6, 2024: Donald Trump secures a re-election victory.  

>December 13, 2024: China's total grain production for the year reaches a record 706.5 million metric tonnes, driven primarily by a bumper corn harvest.  

>December 24, 2024: The government launches a 2024-2035 initiative to promote cereal grain consumption, highlighting its health benefits and improving production standards.  

>December 31, 2024: China issues new aquaculture industry guidelines to encourage the use of non-grain feeds, such as microbial protein, and aims to cut feed consumption per unit of animal product by over 7 per cent by 2030 compared to 2023 levels.  

China’s response to Trump’s Congress address

China has vowed to “fight till the end” if the US escalates its trade war, following President Donald Trump’s announcement of reciprocal tariffs on Chinese imports.  

 

In a post on X, China’s Foreign Ministry accused the US of using the fentanyl crisis as a “flimsy excuse” to justify higher tariffs. “If war is what the US wants, be it a tariff war, a trade war, or any other type of war, we are ready to fight till the end,” the Chinese Embassy in the US said.  

 

Addressing Congress on Tuesday (local time), Trump confirmed new tariffs on multiple nations, including China and India, starting April 2. He claimed China’s tariffs on US goods were twice as high as US tariffs on Chinese imports. “The system is not fair to the US; it never was. On April 2, reciprocal tariffs kick in. Whatever they tax us, we will tax them,” he said.  

 

In response, China announced additional tariffs of 10-15 per cent on key US exports, including chicken, wheat, corn, and cotton, starting March 10. It also expanded its list of unreliable US entities, restricting 15 American companies, including defense-linked firms, from trade and investment.  

 

[With agency inputs]