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Bearish outlook for U.S. ag exports to China
A geopolitical expert predicts Chinese demand for U.S. ag exports will fade in the next decade.
Jacob Shapiro is the director of geopolitical analysis for investment firm Cognitive Investments and the kick-off speaker for the Minnesota AgriGrowth Ag and Food Summit Thursday in Minneapolis. Among the issues covered, he said China has taken steps to improve relations with the U.S.
“I think it’s because their biggest problem, it’s not Taiwan, it’s their economy. And their economy is facing some major struggles right now.”
He says that’s largely because China is going through an economic transition.
“And until they’re through this economic transition, they’re going to be relatively nice (to the U.S.).”
But he suggests as the Chinese government attempts to redistribute wealth to build rural incomes, domestic production of food and ag products will grow.
“So the message that I want you to have there is that as soon as China can source something not from the United States, it will.”
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