Monday, April 30, 2018

Sorghum, A Trade Fight Between China and the U.S.



The United States of America and China had been rivals in the economic realm for quite a while. Since the president Trump was elected, their relations got worse. The two economic giants are fighting over everything, lately, Sorghum has been a new subject.
Sorghum is a cereal grain and it grows like a corn. It is usually used for sweating, but it has more usages, especially here the United States. It is used as live feed and then transformed to ethane. Sorghum is drought resistant and has a huge value in drier regions of the States. It is also popular because it can be used as ground into a flour and it can substitute wheat flour. There is no doubt that Sorghum is an important to the farmers and as all to the U.S economy.
China is also one of the countries that benefit from Sorghum, it used for animal feed and the making of liquor. The trick is that it is essentially imported from the United States. The export of Sorghum in China has reached a seal of 2 billion in favor of the U.S in 2015 and made one billion for the past two years. It is an export that really favors the U.S and due to recent invents China wants to make the trade life trickier for them.
After Washington had mad tariffs on import on solar panels and washing machines from China, the minister of economy in China open an investigation on Sorghum surcharge in February. A previous investigation reviled that Sorghum grain being dumped at a price that hurts domestics producers, it also a reason why the minister of economy acted and required the importer to pay 178.6% of the value of the Sorghum shipment form the U.S.

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