US government shutdown muddies China trade as agricultural officials miss expo

The ripple effects of the record-breaking US government shutdown have spread beyond Washington, denying US agricultural officials an opportunity to deepen cooperation with Chinese companies at a high-profile trade fair even as bilateral tensions show signs of easing.

The Post learned on Thursday that, because of the shutdown, representatives from the US Department of Agriculture (USDA) did not attend this year’s China International Import Expo (CIIE) in Shanghai. This marks the first absence of USDA staff since the American Food and Agriculture Pavilion was established at China’s flagship import expo in 2023.

“Had it not been for the federal government shutdown, they would already have been here at the CIIE, now that [US President Donald] Trump has met [President] Xi [Jinping] and China has resumed buying,” a source said, speaking on condition of anonymity.

For the last two years, USDA officials have flown to Shanghai to unveil the agriculture pavilion and meet Chinese officials as part of a federal push to broaden access to China’s market and chase sales. With the six-day expo well under way and no end to the shutdown in sight, that opportunity for government-to-government interaction appears to have been lost.

The absence is particularly notable, coming just a week after a high-profile summit between the presidents helped cool months of trade tensions. The expo was widely expected to be a prime opportunity for US exporters to capitalise on renewed rapport between Washington and Beijing, particularly around agricultural purchases.

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An exhibitor at the US pavilion from California – a state which produces many of the country’s most lucrative crops – said the shutdown has had a chilling effect on business, though the impact appeared to be manageable “for now, if it can be ended expeditiously”.

South China Morning Post