As the trade war between China and the U.S. escalates, Russia is coming to Beijing’s rescue by offering a million hectares of land suitable for cultivating soybeans and other agri-products.
The Hong Kong-based South China Morning Post has quoted Valery Dubrovskiy, director of investment for Russia’s Far East Investment and Export Agency, as saying that several Chinese companies had already expressed interest in the deal.
“We expect most of the investment to come from China,” he said. “We expect 50% from China, 25% from Russia and 25% from other countries like Japan and Korea.”
In retaliation
Mr. Dubrovskiy pointed out that with the latest announcement, the entire three million hectares of arable land in Russia’s Far Eastern Federal District is now available to foreign farmers. Apart from soybeans — of which China is the world’s biggest consumer — the area can also be used for growing wheat.
China has curbed soybean imports from the U.S. by raising tariffs by 25% on a range of products, including the legume, in retaliation against a similar move by Washington in early July.
Stopped imports
Chinese Vice Agriculture Minister Han Jun had earlier said that since July 6, Chinese firms had “basically stopped” importing soybeans — a product that is used for making cooking oil, biodiesel and high protein meals for farm animals.
He had warned that the U.S. would find it “very difficult” to regain the Chinese market, once Beijing found reliable alternative suppliers.
Despite Russia broadening its footprint in Beijing’s food-security equation, analysts have pointed out that China may not be getting the best cultivable land in the Far East, which has already been parcelled to domestic farmers. Besides, a large influx may trigger local frictions, in view of the perception that Chinese farmers are using excessive fertiliser and pesticides for cultivation.