Competitive Analysis and Market Power of China’s Soybean Import Market

摘要

This research conducts a competitive structure analysis of the Chinese soybeanimport market which leads to the hypothesis that China’s soybean importers mayhave stronger market power in China’s soybean import market. Then, this researchdevelops and simultaneously estimates a two-country partial equilibrium trademodel to test U.S.-China market power of soybean trade. The empirical resultsupports our hypothesis that Chinese soybean importers have stronger marketpower relative to U.S. soybean exporters. This Chinese market power can becountered by U.S. and South American companies through developing new andexpanding existing markets for soybeans throughout the world and investing inChinese soybean storage and crushing capacity.