Smithfield Foods China, Major Exporter of Pork, Caught in Trade War

China and US are developed nations but with opposite ideologies and therefore a kind of cold war persists between the two nations. In recent times, Beijing has imposed tariff on the US imports of products like pork meat. Many businesses across the US find China a lucrative destination for trade and such move on the part of Beijing diminishes business profitability of many US businesses. Smithfield Foods China is a Virginia, US based business. It is acclaimed producer of high quality pork meat for its customers, local or global. Smithfield Foods China was purchased by China’s WH group and the deal was known to be one of the biggest foreign take-over of a US based company.

Sino-US Trade War

Over a number of years the relation between China and the US were sour. There are socio-political reasons for the cold relations between the two nations. According to reports, the US imposed tariffs on the imports of steel and aluminium from other countries including China. This led to the Chinese imposition of tariffs on the US imports of goods likepork. The US is now pondering to impose tariff on other goods citing intellectual property theft. This trade war is intensifying and has become a matter of concern for Chinese as well as US businesses.

China Imposed Tariffs on US Imports of Pork

From online reports it is understood that Smithfield Foods China or the WH Group exports pork meat to roughly 40 nations across the world and the company management believes that the trade war can lead to diminish business profitability. The US farmers are speculating that their nation can impose tariff on Chinese imports of US made soya beans as these products are very much in demand in China. The Chinese farmers use the US made soya beans to feed the cattle, including the pigs and whores. The WH Group has facilities in China where US soya beans are used to feed the pork, poultry. The WH Group also has a large pork processing business inside China.

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