China & International Trade
International trade is a key driver for Nebraska agriculture’s economic health. And China is a key cog in the international trade engine. Purchases of U.S. agricultural products by China are a primary reason for the rally in commodity prices over the past two years. The end of the Phase One agreement, slowing economic growth in China, recovery of Chinese stocks, and tension between the U.S. and China create uncertainty in this important market. China did not live up to its obligations under the Phase One agreement and it remains to be seen how the Biden administration reacts to the failure. The slowing growth in the Chinese economy and faltering incomes could put a chill on its beef and pork imports. Already port delays and container shortages are causing headwinds for beef sales into China. Nevertheless, while there is uncertainty with China, and overall U.S. agricultural exports are projected to be less in 2022, exports should remain at historically strong levels.