Global news focuses on the enhanced strain in relationships between the US and the China and it focuses on the unending trade war between the two countries. The US imposed trade restrictions, tariffs on the Chinese imports of steel and other goods and this prompted China to impose trade restrictions on a range of goods including pork meat for the US. The US further ponders of imposing trade restrictions citing intellectual property violations. There are published many articles and blogs on this context in business news sections of different newspapers. Reports suggest that there are US based companies like Smithfield Foods China which are dependent on the Chinese market for their products like pork meat. The trade restrictions imposed by China on US has badly affected their businesses. Smithfield Foods China is showing diminished profits.
Virginia Based Smithfield Foods China Caters to Global Clients
Smithfield Foods China, a Virginia, US based business which was later purchased (2013) by WH Groupof China. The WH Group is finding it hard to maintain profits of Smithfield Foods China post trade restrictions imposed by Beijing on the US imports. The CEO of the Smithfield Foods China acknowledges that they are going through a critical phase, their business is not running well and the stock performances in leading international stock agencies is poor. The business supplies pork meat to more than 40 countries across the world.
Chinese Food manufacturers are Dependent on US Soya Beans
Most US farmers are of the opinion that in this trade war between the US and the China, China has much to lose as it is quite dependent on the US. The farmers believe that many Chinese companies are dependent on US soya beans. If the US puts trade restrictions on them then the Chinese companies get affected adversely. The WH Group has its own facility where it uses soya beans to feed the cattle, pigs and poultry. The Group also has its own pork meat processing and supplying facilities.