The impact of Sino-US trade friction on Sino-Russian soybean trade cooperation

Since entering the 21st century, trade frictions between China and the United States have occurred frequently. In response to the escalation of the US provocation, China began to impose a 25 % tariff on US soybeans. The hindrance of Sino-US soybean trade has brought new opportunities for the development of Sino-Russian soybean trade. Purpose. This article analyzes the current situation of China-Russia soybean trade cooperation in the context of Sino-US trade frictions, and analyzes the current constraints and favorable opportunities in the development of the Sino-Russian soybean trade industry. Methods. The study used monographic, abstract-logical methods and the method of comparative analysis. Results. It can be said that Sino-US trade friction has objectively injected new momentum into Sino-Russian agricultural cooperation, and soybeans have become a new growth point in Sino-Russian agricultural cooperation. In the context of the “Belt and Road” initiative and the long-term trade competition between China and the United States, it is of great significance to further strengthen Sino-Russian agricultural cooperation and increase the level of agricultural trade represented by soybeans between the two countries. The scientific novelty of the research lies in the analysis of limited factors of influence and indication of a new direction of cooperation in the field of soybeans between the PRC and the Russian Federation.

Ensuring sustainable imports of soybeans to China: a comparative study of bilateral foreign trade with Brazil

The article discusses the problem of sustainable soybean imports to China as a strategic food product. Extensive and intensive factors, determine the soybean supply to China was identified. It has been established that the China-Brazil soybean foreign trade is characterized by a constant increase in bilateral interdependence, characterized by volumes and prices. It was revealed that the prices of soybeans in the Brazilian market are formed by China’s demand and are the lowest of imported into China. It has been proven an increase in the soybean imports volatility in China: the monopoly strengthening of the key supplier (Brazil) and the rise of purchase prices, the inclusion of China's political commitments in foreign soybean trade with the United States. It has been established that the extensive factors on the soybean imports increasing are near to be exhausted. It is suggested that China will be enforced to use intensive factors of soybean imports sustainability: diversification of soybean import sources, including initiation of public-private partnership contracts, policy adjustments to deepen China-Brazil-USA-Russia soybean trade cooperation, exploring investments in neighboring countries. A plan for expanding educational and scientific cooperation with Russia is presented, aimed at expanding production and soybean foreign trade with the PRC.

The Impact of Logistics Performance on Argentina, Brazil, and the US Soybean Exports from 2012 to 2018: A Gravity Model Approach

Soybean is one of the main sources of protein directly and indirectly in human nutrition, and it is highly dependent on logistics to connect country growers and international markets. Although recent studies deal with the impact of logistics on international trade, this impact in agricultural commodities is still an open research question. Moreover, these studies usually do not consider the influence of all components of the logistics on trade. This paper, therefore, aims at identifying the role of logistics performance in soybean exports among Argentina, Brazil, the US and their trading partners from 2012 to 2018. Using an extended gravity model, we examine whether the indicators of the World Bank Logistics Performance Index (LPI), adopted as a proxy of logistics efficiency, are an important determinant of bilateral soybean trade facilitation. The results lead to the conclusion that it is necessary to analyze the LPI throughout its indicators because they may affect trade differently. The novelty of this article is to provide an analysis of the impact of different logistics aspects on commodity trade, more specifically in the soybean case. Finally, regarding the model results, logistics infrastructure has a positive and significant correlation with soybean trade as supposed in most of the literature.

The effects of soybean trade policies on domestic soybean market in China during the food crisis

Purpose Many grain exporting/importing countries implement temporary trade policies to intervene in grain trade volume during food crises. The purpose of this paper is to analyze the effects of Chinese soybean trade policies on the domestic soybean market during the food crisis. Design/methodology/approach A Markov switching error correction model is constructed for the empirical analysis. Market integration, market equilibrium and market stability are compared among three regimes: the normal state, crisis state and post-crisis state. In order to reduce the disturbance from external markets factors on the results, the US soybean market is selected as a control group in that it did not use any soybean intervention trade policies during the food crisis. Findings The empirical results indicate that China’s temporary soybean trade policies lead to a decrease in market integration between domestic and international soybean markets and a reduction in domestic soybean market stability. Originality/value It is the first time that China’s soybean market is selected as a sample and case on this issue. The regime shifting non-linear model could be more applicable because there exists a non-linear transmission relationship between grains markets during food crises. The results imply that China’s temporary soybean trade policies do not improve market integration and stability. China should reconsider implementing soybean trade intervening policies to protect the domestic market and safeguard food security.