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China's grain enterprises are turning to alternative sources for soybean imports, given the reduction of soybean imports from the United States amid the trade frictions between the two countries.

China is the world's largest soybean importer, accounting for 60% of global soybean imports. About 60% of U.S. soybean exports ordinarily go to China.

But the ongoing China-U.S. trade war has meant that American soybean farmers are losing their strong position in China's market. 

China's 25% retaliatory tariffs on American soybeans will increase the price per ton of beans from the United States by between 700 and 800 yuan, or 101 to 116 U.S. dollars. 

Yu Xubo, the president of China's biggest state-owned agricultural products supplier, China National Cereals, Oils and Foodstuffs Corporation (COFCO), says his company is turning to South America for alternative sources of imports.

"Statistics from the first half of the year show that our soybean imports from the United States dropped by 2.84 million tons, a 16% decrease. Our imports from South America grew by 15% especially from Brazil, where the volume increased by 3.82 million tons," says Yu.

Another company on the lookout for suppliers in South America is China Grain Reserves Corporation, known as Sinograin, China's state grain stockpiler. 

"Over the past few months, we have turned to other sources of soybeans, by seeking multiple import channels from global markets. Instead of purchasing soybeans from the United States, we have turned to other countries including Brazil, Argentina, Uruguay and Canada, purchasing a total of 2 and a half million tons of soybeans. 90% of the new imports come from South American countries," says Chen Xuecong, the vice general manager of Sinograin Oils Corporation.

China looks to further increase its soybean imports from South America, as well as from countries taking part in the Belt and Road Initiative.

Yu Xubo explains the advantages of this approach.

"In the long run, plough land resources in South America and the Black Sea region enjoy great potentials, so they can play an important role in supplying soybeans. Seeking alternative soybean supply sources can ensure the security of agricultural products imported to China, and it also provides opportunities for relevant countries," says Yu.

Chen Xuecong says there's no need to worry about the soybean shortage brought about by the reduction of imports from the United States.

"We will increase soybean imports from suppliers in South America and Canada, since they enjoy great potential for an increase in production and supplies. We may also consider countries bordering the Black Sea as new suppliers, such as Ukraine and Russia, as they also have the potential to boost oilseed production," says Chen.

Chen Xuecong adds that they will also find ways to increase domestic oilseed production to make up for any shortage.

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