American Agriculture: Primed for the Chinese Century?

The crisis in the Middle East has detracted American’s attention from one of the most significant economic trend of the new century: The Chinese century --- China’s emergence as a global economic superpower, possibly even the world’s leading economic power in the next twenty years.

It’s growing technological dominance is undisputed.

“China already produces half of the world’s microwave ovens, one-third of its television sets and air conditioners, a quarter of the washers and one-fifth of the refrigerators,” writes Stewart Truelsen, of the American Farm Bureau Federation.

Many fear this growing hegemony, though Truelson believes U.S. farmers shouldn’t be numbered among them. For starters, the loss of jobs to China probably will not be as severe in states with strong agricultural bases.

Moreover, China’s economic surge has been accompanied by a growing demand for agricultural imports --- a factor that has greatly benefited U.S. producers within the last couple of years. Soybeans have enjoyed the biggest boost, followed by cotton.

“China is becoming the factory to the world, but don’t expect it to become the food producer to the world, even if it tried,” Truelsen writes. “China’s economy grew 9.5 percent in 2004, but much of this growth was in manufacturing and construction. China’s agricultural output grew in value by only 6.3 percent. China is more likely to be the world’s largest food shopper, and that’s good news for American agriculture.”

Posted by Jim Langcuster at May 31, 2005 04:36 PM | TrackBack