02.07.2009
China is expected to ban imports of U.S. chicken in coming days, a move likely to deliver a blow to the struggling American chicken industry and escalate trade tensions between the two nations.
The potential ban appears to be tied to a provision in the most recent U.S. spending bill that prohibits the USDA from allowing Chinese chicken plants to send poultry products to the U.S. Lawmakers question whether China's chicken processing plants meet U.S. standards.
The potential ban could be a big blow to the U.S. chicken industry, which has been struggling with high grain prices and a price-depressing oversupply of chicken. Exports had been a bright spot for the industry, and last year China surpassed Russia as the largest destination for U.S. chicken.
U.S. chicken exporters will lose about $370 million over the next six months if China doesn't resume imports.
China's vice minister of Commerce Chen Jian denied talks that China would soon be blocking imports of US chicken into the country