Home Categories political economy Lang Xianping said: New imperialism in China

Chapter 6 Chapter 05: Corn Wars: Doom

Imperialism is the highest stage of capitalism Imperialism, or the domination of finance capital, is the highest stage of capitalism... The dominance of finance capital over all other forms of capital means the dominance of rentiers and financial oligarchy, the state with financial "power" It is in a special position different from all other countries. (Lenin: "Imperialism is the Highest Stage of Capitalism" People's Publishing House, April 2001, 3rd Edition, p. 51) Since the cost of building chicken coops is not low, the cost of labor is not low, and the cost of hatching chicks is not low, and the United States needs more space to raise chickens, then why is American chicken so cheap?

From 1998 to the present, the amount of US government subsidies for corn has reached 29 billion US dollars. What is the concept of 29 billion US dollars?Converted into RMB, it is almost 200 billion yuan. Aren't you going to take anti-dumping retaliation against American chicken now?Then you will inevitably encounter corn. Imagine, if you were an American, how would you counter it? The next step is to start manipulating China's corn market, and let the story of soybeans be reproduced in the corn market again. With the occurrence of the special protection case of tires and the launch of the "double reverse" investigation by the Ministry of Commerce of my country on imported chicken from the United States, the focus of Sino-US trade will shift from tires to feed and corn.Because the U.S. government provides high subsidies for corn planting, this makes U.S. corn have strong price competitiveness in the global market, and at the same time, it gives this subsidy a moral high ground in the name of new energy, so, thus In what direction will the corn war triggered by it develop?


After US President Barack Obama signed the tire special safeguard case on September 12, 2009, we decided to conduct an anti-dumping investigation on chicken meat from the United States.Because American chicken is sold very cheaply in China, we are not its opponents, so we want to anti-dump and raise tariffs.So readers, please think about it, why is American chicken so cheap?First, do you need to build chicken coops and chicken coops to raise chickens?Do you think it will be cheaper to build a chicken coop in the US than in China?No way?The raw materials in the United States are so expensive, and the cost of building chicken coops for Americans is higher than that of China.Second, do you need to hire someone to take care of the chickens?The cost of hiring someone to take care of chickens in the United States is also higher than in China.Third, the method of hatching chicks is the same, so the cost in the United States is not lower than that in China, because there is no other technology for hatching chicks.Fourth, American chickens are raised in a humane way. There is a large space between chickens for movement, so American chickens can stretch their legs and take a walk. Unlike our chickens, which have no sense of space, chickens They are all crowded together, and there is no way to squat. It seems that it is relatively lucky to be a chicken in the United States.

So I would like to ask, since the cost of building chicken coops is not low, the cost of labor is not low, and the cost of hatching chicks is not low, and American chickens need more space, so why is American chicken so cheap?Because feed is cheap.What is the feed made of?corn.So the chicken question is really a corn war.So why is American corn so cheap? Looking at some data, the US government has given a large amount of subsidies to corn.For example, a farm with 1,500 acres has an output value of 500,000 US dollars, and the US government gives a subsidy of 75,000 US dollars, which is basically equivalent to the profit of this farm.From 1998 to the present, the amount of US government subsidies for corn has reached 29 billion US dollars. What is the concept of 29 billion US dollars?Converted into RMB, it is almost 200 billion yuan. This kind of generosity is really amazing.Therefore, corn in the United States is very cheap, and of course the feed made of corn is also very cheap.

Let’s look at another data. China’s annual corn production is 161 million tons, while that of the United States is 368 million tons.What does the United States need so much corn for?In addition to making feed, the United States also uses corn to produce ethanol, which is a new energy source. In 2004, 11% of all corn production in the United States was used to produce new energy ethanol. By 2008, this figure had increased to 33%.How much is 33% of US corn production?Almost equivalent to China's output, about 160 million tons.The corn equivalent to China's entire annual production has been burned by the Americans to make ethanol.Do you know what the point of this thing is?That is, the United States has found a very good reason to subsidize its corn - to develop new energy sources and protect the environment. They stand on the moral high ground to subsidize corn.To develop non-polluting, green new energy ethanol for the world, should this subsidy be appropriate?Because after success, the results of research and development can be promoted to the whole world, so that the whole world can get green and environment-friendly energy.You see, through the development of new energy, the United States stands on the moral high ground and continues to subsidize, and it is a reasonable and legal subsidy. How do you sanction it?

As a result, other corn producing areas, including Brazil and Argentina, feel uncomfortable. How can you subsidize so much?So Brazil and Argentina filed a complaint with the WTO, and after two or three years, they were sentenced. The United States said yes, I will reduce the subsidy amount by 10%.Brazil is still dissatisfied, and if they are not satisfied, they will sue again. It will take another three or four years to get results, and the United States will reduce it by another 2%.Still not satisfied?Then you continue to sue and see who can afford it.This is what the Americans do, it is a subsidy, no matter what you say.Therefore, corn in the United States is the lowest price, and the feed is very cheap, so chicken in the United States is very cheap.Aren't you going to take anti-dumping retaliation against American chicken now?Then you will inevitably encounter corn. Imagine, if you were an American, how would you counter it?If you dare to sanction American chicken, the United States will dare to sanction you through corn.Aren't you going to fight?Then let's fight to see who has the strength.According to the information I have gathered, the current situation is developing in the way I said.

The United States is the world's largest corn planter and also the world's largest corn exporter. Its output accounts for more than 40% of the world, and its export volume accounts for more than 60t70 of the global market. In March 2009, a survey by the U.S. Department of Agriculture showed that the corn acreage in the U.S. this year is estimated to be as high as 90.454 million acres, a record high since 1944, which is 65 years.According to market analysts, despite the record high production, the price of corn is still expected to rise to a record, because the US government uses corn for new energy, that is, ethanol processing. Apart from providing an excuse for the corn price subsidy, what special significance does it have?


What's next?I have noticed that when the price of oil is high, many people or companies will switch to ethanol, because ethanol is cheaper, and the result of many people switching to ethanol is that the price of ethanol will rise.When the price of oil is low, everyone will use oil instead of ethanol, so the price of ethanol will drop.In the end, this practice in the United States linked the price of ethanol to the price of oil. Since corn can be used to produce ethanol, corn is also linked to oil.In other words, the U.S. government's approach has linked the price of corn to oil. Since the price of oil is manipulated by the United States, it also determines the price of corn.Once the United States decides the price of corn, do readers know how terrible it is?Corn is to be made into feed and used to feed chickens, ducks, cows, pigs, sheep, and fish. Therefore, China’s pork, beef, mutton, chicken, duck, fish, and derivative products include dairy products and eggs. Food, etc., as well as the prices of grain and oil mentioned above, are all under the control of the Americans.So as long as the U.S. government manipulates the price of oil, it manipulates the price of corn, and by manipulating the price of corn, it manipulates most of the food prices in China, and food prices account for as much as 34% of China's CPI (Consumer Price Index).

So, what's next for America?The next step is to start manipulating China's corn market, and let the story of soybeans be reproduced in the corn market again.Because only by controlling corn across the board, can we manipulate feed through corn, food through feed, and CPI through food.So I expect the next step is the corn wars are about to start, how to start? Encouraged by the US government, in 2009 the corn used for new energy in the US will increase from 20% of the total output last year to 25%.According to calculations by relevant United Nations experts, 50 liters of alternative fuel can fill up the fuel tank of a car, and the corn needed to process it is 232 kilograms, which is equivalent to a child's one-year ration.The rise in corn prices will not only deal a heavy blow to countries that rely on imported food, especially poor countries, but will also trigger a chain reaction of rising prices of meat, eggs, and dairy products, which has attracted great attention from all countries.So, what is the status of the domestic corn market?


In 2009, retail prices fell due to the economic depression. In order to protect the rights and interests of farmers, our country raised the purchase price. As a result, the traders and processors in the middle are all dead?For example, the price of corn starch was originally 2,400 yuan per ton, and the price difference with corn should be 500 to 700 yuan, so that there is a profit. In the second half of 2009, the price of cornstarch dropped to 2,000 yuan per ton, and the price difference with corn became 100 yuan, and the factories that produced starch all lost money.The same is true for the production of feed. As a result of the price inversion, all trade, processing and feed industries are in a difficult situation, including New Hope. Recently, New Hope Group proposed to open up corn imports.

Once we open up corn imports, what's the next step in a situation where the US is heavily subsidized?Just like soybeans, China's corn is eliminated across the board.From 1998 to now, the United States has subsidized 29 billion US dollars of corn. How can China have the strength to spend so much money to subsidize a product? How many missiles and aircraft carriers can be built for $29 billion?Once a large amount of cheap corn enters China with the wealth and wealth of the United States, such a large-scale subsidy, Chinese corn will surely follow the same mistakes as soybeans and be eliminated.Then, we will all use American corn in the future, and the price of corn in the United States is linked to oil. Therefore, if the United States wants to cause inflation, as long as the price of oil is raised, the price of corn will rise, and the price of feed in China will follow. If it rises, then China's agricultural products and food prices will all rise accordingly, and China's CPI index will naturally rise as well.It's as simple as that, and this is the United States' countermeasures. As for our trade processors and feed merchants, they have the same wishes as the four major grain merchants.The four major grain merchants hope that China will open up corn imports because they control 90% of the world's corn trading volume. If China opens up corn imports, the four major grain merchants can benefit.China's trade processing plants and feed mills also want to open up corn imports, because they are not profitable because of the upside down price in China.Under such circumstances, the four major grain merchants also hope to open up, and Chinese enterprises also hope to open up. In the end, under the double pressure, it is very likely that imports will really be opened up.The U.S. government will definitely take action at this time to force the Chinese government to open the corn market. If I were the U.S. government, I would definitely do this, and this is also the expectation of Chinese companies. Because the seed industry is related to national food security, many countries in the world are subject to these multinational companies in terms of pricing and other aspects, such as Brazil and Argentina, because the market is dominated by Monsanto.Therefore, the general analysis believes that if Monsanto directly asks China to open its market, it will definitely end in a wall.What's more, on the soybean issue, China has learned from the past.Therefore, it will be very difficult for Monsanto, which is extremely strong in the international market, to open up the corn market in China.So what will Monsanto do?
But the Chinese government may not listen to the United States.Half of China's corn is produced in the Northeast, and Heilongjiang alone has 59 million mu of corn. The government attaches great importance to corn production, and the supervision is very strict.What if the Chinese government does not open up imports?What will America do?The Chinese government attaches great importance to food security. We have learned the lesson of soybeans. What if we are determined not to open imports now?Imagine what the Americans might do? Then simply conquer the bunkers from within the enemy, kill China directly, and produce American corn in China.The reason is very simple. Japan exported a lot of cars to the United States in the past, so the United States set up various trade obstacles and restricted them with high tariffs. What did Japan do in the end?Japan drove Toyota and Honda to the United States and turned them into auto factories in the United States, and hired local workers in the United States to increase employment in the United States. The United States has nothing to do with Japan.The corn situation is the same now, if you don’t open imports, I’m like Honda and Toyota, and I come to China to grow American corn. In fact they've already started doing it.Isn’t there 59 million mu of corn in Heilongjiang? The Northeast is the center of China’s corn and the most important production base, so Americans don’t go to the Northeast, but to a place we can’t imagine, a place that doesn’t produce corn at all——Guangxi.According to my data, as of the middle of 2009, Guangxi has planted 10.26 million mu of corn, which is 1/5 of that in Heilongjiang; the yield per mu is 463 kg, which is 73 kg higher than the average yield per mu in China.The corn they produce is called Deca 007. Who developed the seeds?It's Monsanto again. One of the reasons why Monsanto can become the overlord of the global seed empire is government lobbying.In order to sow genetically modified varieties on as many traditional crops as possible in as many countries as possible, Monsanto's offices around the world are doing their best to overcome local regulations through government public relations and policy lobbying.The "tricks" used by Monsanto in China today are nothing more than replicas in other countries around the world.So, why is Monsanto's lobbying successful all over the world?What secrets lie in Monsanto's all-conquering corn seed?
Now they have developed the Dika No. 007 corn, which is planted by Monsanto in Guangxi.What are they going to do?Cultivate the strength of the "Northern Expedition" and start the "Northern Expedition" from Guangxi.The price of its products is very cheap, and there is no need to rely on open imports. Our Guangxi government is also very cooperative. The local government even uses red-headed documents to fully promote Monsanto's Dika No. 008 corn.Before our Academy of Agricultural Sciences has researched the gene of Deca 008, we dare to promote it. Do you know what its characteristics are?Low cost and large output.What's even more frightening is that we found out that they didn't charge the patent fee for seeds in Guangxi, and sold them to us very cheaply, which was cheaper than Chinese seeds, which was almost equivalent to giving them to us. When Monsanto first arrived in Argentina, it was also very benevolent. It ignored the pirated seeds traded in the black market, and pretended not to see farmers hiding seeds to plant the next generation, just like what is done in China now.It was not until their corn market share accounted for 99% and they fully controlled the Argentine corn market that they began to file lawsuits with Argentine farmers.If such a large company files a lawsuit against an individual, how can the individual be an opponent?Monsanto once filed a lawsuit against 150 farmers in the United States. Do you think that if you are fined, you will be fine?Wrong, an average of eight years in prison.Eight years in prison for a seed?This is Monsanto. In the United States, American farmers can be sentenced to eight years in prison for seed patent fees, plus compensation of dozens of times the patent fee. This is the terrible Monsanto.That Monsanto who stole our soybeans is like a tiger and a wolf, and we have very close contacts with it. Argentinian farmers ended up not only paying a surcharge for genetically modified soybeans, but also being fined and mired in lengthy and expensive legal battles.Not only is Argentina not its opponent, but even the technologically advanced Western Europe has been captured by Monsanto.Now three foreign-owned seed companies—Monsanto, DuPont in the United States and BASF in Germany—have controlled 80% of the corn seed market in Western Europe. Monsanto’s current strategy is not to charge patent fees, which is basically equivalent to distributing free seeds to farmers in Guangxi for planting. This Dika 007 has high yield, low cost, and is particularly resistant to diseases and insect pests. The amount of pesticides used has also been greatly reduced, so farmers welcome it. , the local government will issue red head documents to promote Dika 008.Please think about it, is Monsanto so simple?Do you know what's inside Decca 008?Although I am not an expert in agriculture, I know something about these things.Dika 008 is genetically modified. After the farmers plant it, they will replant the next generation of seeds. After the third generation, the yield will drop significantly.Moreover, the first generation of Dika 008 is particularly anti-virus, but there is a potential problem. There are many kinds of viruses. After it resisted the first and most serious virus A, viruses B, C, D, and E began to expand.Why is virus A the most serious now?Because other viruses are not as toxic as it is, but after you control A, viruses B, C, D, and E will all rise.So once you plant Dika 008, you will find that in the first one or two years, you can resist virus A, but after two or three years, B, C, D, and E viruses all rise up, so after three years, not only the production will drop sharply, but you will also have to buy More pesticides to kill viruses.So what kind of pesticide can kill B, C, D, E viruses?I did a research and found that there are only two companies in the world that can produce specific drugs to kill viruses such as B, C, D, and E, one is Monsanto, and the other is its sister company, BASF in Germany.Readers, do you understand? Don't we like plagiarism?We planted our Dika No. 008 by ourselves, no problem. After two or three generations of production, the yield dropped, and B, C, D, and E viruses all came out. What should we do?There are only two options: the first option is to buy pesticides from Monsanto; the second option is to buy seeds from it.You see, not only the seed money has been earned back, but also an additional income from pesticides, and Monsanto has made another fortune.But you have to pay attention, in the end, all these corn products are from Monsanto. Monsanto has trapped farmers in Guangxi in this way, and they can't leave even if they want to.Three years later, you still hope that Monsanto will not charge patent fees as in the past, let us use its seeds for free, and let us make more money.People are greedy. After three years, you still cannot live without Monsanto. You can either buy pesticides or seeds from it.It's like smoking opium, you can never get rid of it, it's just that in the past it was real opium, but today it's a variant of opium, called genetically modified opium, an agricultural product.After Guangxi farmers taste the sweetness and become rich, I believe Guizhou, Yunnan and other places will start planting this Dika No. 008, and finally Southwest China will become the world's largest corn producer. Therefore, the United States can break into our corn market directly from within China without exporting.Finally, we found that all the corn in China is American corn.Up to this time, the ending of the story with soybeans is the same, but the path choice is different.Because we have learned the lesson of soybeans, we will not import corn easily, but they chose to break through from within us, starting the "Northern Expedition" from Guangxi.This is no longer a theory, they have already started to do it, and currently planted 10.26 million mu of corn.What would happen if all our corn was captured?
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