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Soybeans are literally a commodity. Some third country will just buy the US soybeans and sell them to China. Edit: Commodities are fungible. They are things li
by User23 7y ago
Soybeans are literally a commodity. Some third country will just buy the US soybeans and sell them to China.
Edit: Commodities are fungible. They are things like gold, pork bellies, soybeans, and so on where there is no meaningful difference based on where they were produced. Buyers from some third country will buy soybeans from the USA, relabel them as originating in their country, and flip them to China for a profit. Trade circumvention is nothing new[1]. The US seller doesn't even have to be complicit, once they deliver to the third party they have no control over the labeling and they're not liable to care much either.
Edit: Regarding 5G hardware: "The basic idea is that there is little differentiation between a commodity coming from one producer and the same commodity from another producer. A barrel of oil is basically the same product, regardless of the producer. By contrast, for electronics merchandise, the quality and features of a given product may be completely different depending on the producer."[2] So, no, 5G hardware is not a commodity.
[1] https://agmetalminer.com/2017/05/24/what-is-trade-circumvention-hint-its-certainly-nothing-new/ https://agmetalminer.com/2017/05/24/what-is-trade-circumvent...
[2] https://www.investopedia.com/terms/c/commodity.asp https://www.investopedia.com/terms/c/commodity.asp
- AmVess 7y agoThat's not how things work.
- kolanos 7y agoAnd 5G equipment is not a commodity?
- pjc50 7y agoNo? It's something with basically one and a bit suppliers and a large patent pool.
- mevile 7y ago> Buyers from some third country will buy soybeans from the USA This isn't happening. US farmers are not selling as many soy beans as they used to. The year over year soy bean export decline was in the billions of dollars.