The Truths About Trump's Manufacturing/Import Policy

The Truths About Trump's Manufacturing/Import Policy


Following President Trump's visit to China, comments were made such as, "The Chinese won't invest in the US while China is still there," and "The US doesn't want Chinese companies to invest and grow in strategic areas." Chinese companies alone (without partners) own over 270,000 acres of fertile/irrigated and cultivated agricultural land in the US. They have also acquired approximately 200,000 acres of "unused agricultural land." In fact, in states like California, which feeds the West, and Carolina and Virginia, which feed the East, nearly one-tenth of the agricultural land belongs to Chinese companies. Furthermore, Chinese capital groups are partners in many US agricultural companies through bond/stock purchases.

In the US, nearly 70% of agricultural land is used for livestock. That is, out of a total of 1.2 billion acres of land used for agriculture, approximately 820 million acres are allocated to pastures/meadows. Moreover, there are plans to expand these areas. What about the remaining 400 million acres? A large portion of it is used for agricultural cultivation. But the part that could develop a country is lying idle.

The US is increasing its imports. That is, it consumes more than it produces. Consequently, its debt is also increasing. Alongside this, the areas it leaves idle are also increasing. Reforms are needed in many areas, from human capital to agriculture, energy, and tourism. Trump, who is heavily criticized for his foreign policy, is doing the right thing here and is striving to produce in the US the products it imports when it can produce them domestically. If they are investors, he opens the door wide to Chinese, Central Asian, and African investors. If they are not, and are importers, he doesn't compromise even if they are American. There are countries/models that resemble this aspect, which have broken records in foreign direct investment.

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