Milling & Baking News - October 6, 2020 - 7

Editorial

TikTok tiff matters to grain-based foods

O

ther than perhaps seeing their teenage chil- insist ChemChina is neither owned nor controlled by
dren spending time with the mobile appli- the Chinese military. Exactly what the blacklist entails
cation, it's possible many readers of Milling has not been made clear to the companies involved.
& Baking News have limited experience with TikTok. The blacklisting gives the White House broad powThe Chinese video-sharing social networking service ers to impose sanctions on companies doing business
was launched in China in 2016 by internet technol- with Syngenta. The company's North American crop
ogy company ByteDance and in the United States in protection sales in 2019 totaled $2.5 billion, roughly a
2018. Given that current estimates place active users quarter of Syngenta's total revenues. Another $738 milin the United States at 100 million, chances are more lion worth of seed were sold. The products are sold by
than a few readers have dabbled in TikTok.
dealers and applied on tens of millions of acres across
The service has been in the headlines for more than the United States.
two months because of President Trump's threats to
Chinese officials have ratcheted up the anti-US
shut it down in the United States. In an Aug. 6 Ex- rhetoric in recent days, and speculation has been
ecutive Order, Mr. Trump said the app
growing over whether the government
The increasing
"automatically captures vast swaths of
would retaliate by blacklisting several
use of sanctions
information from its users" providing
US-based companies.
the Chinese Communist Party Ameri"What the United States has done to
against businesses
cans' "personal and proprietary inTikTok is almost the same as a gangas a foreign policy
formation." The same day, Mr. Trump
ster forcing an unreasonable and unfair
weapon is an
signed an order banning WeChat, a
business deal on a legitimate company,"
ominous sign.
texting, social media and payments
according to a Chinese governmentapp. The moves followed by more than a year Mr. sponsored newspaper.
Trump's decision to bar US companies from doing
The moves come against a backdrop of continued
business with Huawei on national security grounds. confusion in agricultural trade between the United
To the degree this diplomatic tiff seems far re- States and China. Purchases of grains and oilseeds
moved from grain-based foods, it shouldn't. Many by China have increased sharply in recent weeks
US commodity, ingredient and grain-based foods after an extended period of minimal business. The
companies have global operations, and the increas- pickup has been welcomed by US producers, but the
ing use of sanctions against businesses as a foreign on again/off again pattern has been tough on propolicy weapon is an ominous sign.
ducers of beef, poultry and swine who raise specific
The WeChat ban, attracting less attention, already products for markets and rely on steady, dependable
is a concern. The app had 1.15 billion users in China markets, even more than grain and oilseeds growers,
in 2019 and is widely used by US companies that op- to sustain healthy supply chains.
erate in China, including major multinational busiThe administration's policies generally have supnesses, for conference calling, text messaging and for port from those who see past diplomatic efforts to
the handling of documents. "The Chinese use it for effect trade policy reform as ineffective. Still, any
everything," one executive said recently.
escalation of the targeting of multi-national busiDrawing still less attention but hitting closer to home nesses in pursuit of foreign policy objectives is a
for grain-based foods was the blacklisting of 10 Chinese worrisome trend. Food and agribusiness companies
companies by Mr. Trump in late August. Among com- based in the United States have enjoyed remarkable
panies declared "Communist Chinese military com- growth over the past few decades thanks to oppanies" by the US Department of Defense was Chem- portunities to invest internationally. US businesses
China, which acquired crop science giant Syngenta SA broadly have much to lose if pathways for foreign
in 2017 for $43 billion. Some knowledgeable sources expansion are narrowed or closed. MBN
WE'RE EAGER TO GET YOUR FEEDBACK: E-mail editor@sosland.com or write to us at
Milling & Baking News, 4801 Main Street, Suite 650, Kansas City, MO, 64112
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Milling & Baking News - October 6, 2020

Table of Contents for the Digital Edition of Milling & Baking News - October 6, 2020

Milling & Baking News - October 6, 2020 - 1
Milling & Baking News - October 6, 2020 - 1
Milling & Baking News - October 6, 2020 - 2
Milling & Baking News - October 6, 2020 - 3
Milling & Baking News - October 6, 2020 - 4
Milling & Baking News - October 6, 2020 - 5
Milling & Baking News - October 6, 2020 - 6
Milling & Baking News - October 6, 2020 - 7
Milling & Baking News - October 6, 2020 - 8
Milling & Baking News - October 6, 2020 - 9
Milling & Baking News - October 6, 2020 - 10
Milling & Baking News - October 6, 2020 - 11
Milling & Baking News - October 6, 2020 - 12
Milling & Baking News - October 6, 2020 - 13
Milling & Baking News - October 6, 2020 - 14
Milling & Baking News - October 6, 2020 - 15
Milling & Baking News - October 6, 2020 - 16
Milling & Baking News - October 6, 2020 - 17
Milling & Baking News - October 6, 2020 - 18
Milling & Baking News - October 6, 2020 - 19
Milling & Baking News - October 6, 2020 - 20
Milling & Baking News - October 6, 2020 - 21
Milling & Baking News - October 6, 2020 - 22
Milling & Baking News - October 6, 2020 - 23
Milling & Baking News - October 6, 2020 - 24
Milling & Baking News - October 6, 2020 - 25
Milling & Baking News - October 6, 2020 - 26
Milling & Baking News - October 6, 2020 - 27
Milling & Baking News - October 6, 2020 - 28
Milling & Baking News - October 6, 2020 - 29
Milling & Baking News - October 6, 2020 - 30
Milling & Baking News - October 6, 2020 - 31
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Milling & Baking News - October 6, 2020 - 35
Milling & Baking News - October 6, 2020 - 36
Milling & Baking News - October 6, 2020 - 37
Milling & Baking News - October 6, 2020 - 38
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Milling & Baking News - October 6, 2020 - 40
Milling & Baking News - October 6, 2020 - 41
Milling & Baking News - October 6, 2020 - 42
Milling & Baking News - October 6, 2020 - 43
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Milling & Baking News - October 6, 2020 - 48
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