Cartoon describes the effects of the current trade war
By Diego Flammini
Staff Writer
Farms.com
America’s largest soybean customer is using a unique platform to highlight the effects of a current trade war.
The Chinese government aired a cartoon on Friday featuring a soybean as its main character. The cartoon appeared on the website of China Global-Television Network (CGTN), the overseas news network of China Central Television, which is state-owned.
“Hi everybody, I am a soybean,” the cartoon begins. “I may not look like much, but I’m very important.”
The cartoon outlines how the United States and China entered a trade war affecting billions of dollars worth of goods.
It also discusses how the trade dispute will impact U.S. farmers and exports.
“More expensive soy could mean that China will look to other sources for the bulk of its imports,” the cartoon says. “If that happens, soybean farmers in the U.S. could take an even greater hit. The crop prices in the U.S. already dropped by 18 percent from May to early July.”
Soybean prices during that time period dropped from about US$10.12 per bushel to about US$8.16 per bushel, CBOT charts say.
The animation also appears to have a political motivation.
U.S. voters will head to the polls in November for the midterm elections. Many of the top soybean-producing states voted for President Trump.
“China's retaliatory response in raising tariffs on soybeans will affect the top 10 soybean-producing states in the U.S.,” the cartoon states. “Nine of them supported Trump in the 2016 presidential elections.”
Voters and politicians in several of those states are also concerned about trade relations with China.
“From a farmer’s perspective, all you can do is wait and hope, which aren’t very good options,” Michael Petefish, president of the Minnesota Soybean Growers Association, told the Associated Press. “A lot of people aren’t very optimistic, unfortunately.”
“Trade wars are stupid, and nobody wins trade wars,” Ben Sasse, a Nebraskan Senator, told KMTV on Thursday. “Trade wars are always lose-lose.”
Farms.com has reached out to the American Soybean Association for comment.
CGTN.com photo