While in the short-run China needs US soya beans to meet domestic demand, in the long-run it could find other means to get its hands on the commodity. This might be the best option for China as relying solely on Brazil as the supplier would drive up the import cost. It could turn to other exporters, such as Brazil, or even buy land in Brazil and produce its own crops. The Chinese government has been trying for years to diversify away from soybeans, which account for about a third of total food production but are also used mainly by poor people who grow them because they can Finding an alternative supplier for China would be devastating for the US market.
While in the short-run China needs US soya beans to meet domestic demand, in the long-run it could find other means to get its hands on the commodity. It could turn to other exporters, such as Brazil, or even buy land in Brazil and produce its own crops. The Chinese government has been trying for years to diversify away from soybeans, which account for about a third of total food production but are also used mainly by poor people who grow them because they can Finding an alternative supplier for China would be devastating for the US market.