When China buys grain, who really buys?

Nov 23, 2020 at 09:24 AM CST
“Is the United States Government actually holding the ownership of the grain or whatever the trade items are or is there private ownership making the deals and because the trader is a US citizen it’s considered to be the United States trade. The same question as to the Country on the receiving end, is it the Country actually buying the trade item or is it a private business in say China making the purchase?” I talked about trade and Chinese state-owned enterprises (SOEs) last November, so let’s go to the video: China has two major SOEs that trade commodities: COFCO and Sinograin. As you can see, they make up about 23% of their soybean crushing capacity. When it comes to making good on trade promises, the Chinese government can simply order these two entities to buy US soybeans, but they don’t have enough capacity to handle the kind of numbers being batted around in the media.

Nov 23, 2020 at 09:24 AM CST

“Is the United States Government actually holding the ownership of the grain or whatever the trade items are or is there private ownership making the deals and because the trader is a US citizen it’s considered to be the United States trade. The same question as to the Country on the receiving end, is it the Country actually buying the trade item or is it a private business in say China making the purchase?” I talked about trade and Chinese state-owned enterprises (SOEs) last November, so let’s go to the video: China has two major SOEs that trade commodities: COFCO and Sinograin. As you can see, they make up about 23% of their soybean crushing capacity. When it comes to making good on trade promises, the Chinese government can simply order these two entities to buy US soybeans, but they don’t have enough capacity to handle the kind of numbers being batted around in the media.