CHINA-INDIA: AGRICULTURAL COOPERATION

The official Global Times on September 25, 2018 quoted experts as saying the ongoing Sino-US trade dispute will provide a chance for China and India to strengthen their agricultural trade, which will help to address the trade imbalance between the two countries. They cautioned, however, that the high price of India's farming products is still a major obstacle. Zhao Gancheng, Director of the South Asia Studies Department at the Shanghai Institute for International Studies, told Global Times "It's very likely that China will turn to India as a replacement market as the Sino-US trade war worsens." According to Zhao Gancheng, if China increases its agricultural imports from India, it can help ease the two countries' trade imbalance, which is something that the Indian government has been complaining about for some time. He added "Farming in India is often geologically separated and has a low level of modernization, causing their farming products to have a relatively high price compared with Western products. This will be a major disadvantage for their exports. If the US farming exporters cling on to the Chinese market by means of entrepot trade [exporting to China via a third country] or if the trade dispute doesn't worsen, then I don't think India can compete with US farming products." Jiao Shanwei, Editor-in-Chief of cngrain.com, a website specializing in grain news, told Global Times "Soybean oil is not a big problem, as Chinese consumers' demand for it is decreasing. I think the Chinese government can directly import soybean meal from alternative markets and India is a good choice given their sufficient production of such products." 







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