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Smithfield Foods China is affected by US-China Trade War


China is acclaimed for its food, desserts. There are many companies which are directly or indirectly associated with food in the country. Smithfield Foods China is a Virginia US based food manufacturing company and the company exports pork meat to many countries around the world. In this context, it is relevant to say that many countries including the UShave a huge demand forChinese pork. However, in recent times, because of socio-political reasons there exist an enhanced tension between the US and the China. The tension between the two countries is triggering trade wars. Earlier, the US has imposed a trade restriction (tariffs on the Chinese imports of Aluminium, steel) on China and other countries. The Chinese retaliated by imposing tariffs on the US imports of a range of products including pork meat. Strategists are of the opinion that the US are contemplating on imposing tariffs or trade restrictions citing violations of intellectual property rights.

US-China Trade War Hurting Businesses in Both Countries

Many US based businesses which uses Chinese products are deeply affected by Beijing’s stance towards the USA. Many business CEOs like the one of Smithfield Foods China, acknowledge that they get market profits by selling their goods to China. Earlier, US businesses performed well in the different international stock markets. However, once tariffs were imposed, the businesses performed poorly. In this context it is relevant to say that Smithfield Foods China has been taken over by the WH Group of China and because of the trade war it is running low in profits.

Chinese are Dependent on US Soya Beans

The US farmers believe that the Chinese are heavily dependent on US products and if the US imposes further trade restrictions then it will be difficult for the Chinese. They emphasized that the Chinese are very much dependent on US soya beans. The farmers there use the soya beans to feed the cattle, pigs, hoar and poultry. Understanding reveals that the WH Group has facilities in China where it feeds its livestock US soya beans. The Group also has its own pork manufacturing facilities.




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