Prospects for a rebound in U.S. agricultural exports remain constrained by China’s increasingly opaque and unresponsive legal system and the additional import tariffs China assessed on many U.S. food and agricultural products in response to the United States’ 232 and 301 trade actions.  For more information about the U.S. products affected by these trade actions, see the FAS Global Agricultural Information Network (GAIN) reports in response to the U.S. 232 trade action and U.S. 301 trade action.  Every month China issues new entry requirements – certificates, registration, attestation – that do not necessarily increase product safety but push the onus of ensuring food safety away from Chinese food regulators.  Often these new requirements are not notified to the WTO for public comment and are not announced until implementation is imminent.  China’s erratic rule-making also often subjects U.S. products to scrutiny that is not faced by domestic producers.  China is also extending the scope of its food regulations to cover products traded under new platforms which may begin to dampen prospects for e-commerce traded products. 

Consumers continue to exhibit concern for food safety, a driving factor for imports, which are seen as being more heavily inspected and generally safer than local products.  The impact has been particularly strong for dairy products and seafood, and to especially include those products for children and food ingredients as Chinese manufacturers seek to avoid problems with locally sourced ingredients.  Food safety is also driving a portion of e-commerce sales of imported food products.  Many consumers consider imported food products purchased directly from overseas through e-commerce channels to more authentic and safer than those purchased through traditional stores.