China has greatly increased its influence throughout the world in recent decades. Companies and governments are taking notice and are taking action to counteract it or take advantage of it.
Coalition for a Prosperous America Industry Analyst Ken Rapoza has been studying the issue and spoke at length about it on the America’s Work Force Union Podcast. He discussed Chinese influence on meat production, Tesla’s interest in China and more.
Where does our beef come from?
Rapoza began by explaining the various restrictions on labeling meat. According to current agreements, meat bought at big box stores is unable to be labeled with a country of origin. Rapoza said the labeling of meat would be discriminatory against Mexican and Canadian ranchers. However, seafood will always have a country of origin.
Chinese companies began to take notice of the popularity of meat in the U.S. A Chinese company then purchased Smithfield Foods, which owns over 100,000 acres of land in the Midwest. Some U.S. politicians have attempted to curb the purchase of American land by foreign nationals and companies. This includes specifications for land near military installations and other sensitive areas.
Rapoza said this is an easy strategy, as it is popular to speak out against China and attempt to limit their influence.
Investing in China
Rapoza said U.S. companies are expanding to China for many reasons. One such company is Tesla, who already has a factory there, but is looking for further expansion.
Tesla has plans to build a large production and distribution facility in China. This will be their European export zone, main hub for the Asian market and more. The deal has been delayed, as he suggested the Chinese government called the purchase off due to relations between China and the U.S.
Rapoza said the relationship with China is a one way street. While any Chinese politician or national can currently purchase property and buildings in the U.S. with few restrictions, American citizens do not enjoy the same luxury in China.