China trade relations improve Iowa economy

The Capitol is quiet tonight as I sit down to write this week’s legislative commentary. Last night was a dramatic contrast as the voices of 650 Iowans, Chinese visitors and language interpreters echoed throughout the rotunda. It was a privilege to attend the official state dinner in honor of Chinese Vice President Xi Jinping.

This was not Jinping’s first visit to Iowa. Nearly 30 years ago, Xi Jinping visited Iowa as a Hebei Province party official and director of the Feed Association of Shijiazhuang Prefecture. Now Vice President of China, Xi Jinping returned to Iowa to visit friends in Muscatine he met in 1985. He also toured Rick and Martha Kimberley’s 4,000 acre corn and soybean farm in rural Maxwell.

Iowa was a gracious host to the man who will soon lead the largest population in world history.

Vice President Xi’s visit was an opportunity to increase exports to the largest country in the world and strengthen our agricultural trade relationship. China already is the largest buyer of U.S. farm products, an amount that grew to over $19 billion in 2010. If Iowa can further increase trade with China, it will add value to our crops, improve farm incomes and help create good-paying jobs.

Officials from the Chinese delegation also said they hope the Vice President’s visit will strengthen ties with Iowa businesses and farmers. The visit already is bringing results. On Wednesday afternoon at the recently opened World Food Prize Headquarters, Chinese agricultural leaders signed agreements to buy over 300 million bushels of soybeans worth about $4.3 billion. China already is the largest buyer of soybeans and represents about 60 percent of all soybean exports in the U.S. Keep in mind, in 2010 Iowa produced 496 million bushels of soybeans. Clearly, agricultural trade with China is a benefit to Iowa’s economy. Xi’s visit will help to deepen our trade relationship.

The eyes of the world were on Iowa during the visit. They were watching for hints as to how Xi Jinping will lead once he becomes President of China early in 2013. Prior to the events, I read several articles stating that he might be “more open” than previous Chinese leaders. Although I did not have the opportunity to meet him, I did observe the Vice President up close as he interacted with the governor, First Lady, and lieutenant governor as well as U.S. Secretary of Agriculture Tom Vilsack. He seemed to be at ease and hospitable. However, the true measure of his diplomatic skills isn’t how well he interacts with other leaders. The test of his leadership lies in whether he charts new courses on major issues currently handicapping China on the international stage. Among them are human rights violations and lack of religious freedoms. Hopefully, he will lead his people with dignity on these matters.