Saturday, April 03, 2010

China-Argentina Trade War


China suspended deliveries of Argentina soy oil because they found hexane (an industrial solvent) in the product. Argentina stopped Chinese shoes and garments.
Argentina has to find a niche in the new world order dominated by China, or it will will be condemned to eternal poverty. Brasil has secured its role as Chinese trade partner. Argentina is failing. Too bad.

9 comments:

Anonymous said...

"Argentina is failing."

That is what happens when Jews dominate and eventually undermine your national economy...see USA.

J said...

Habibi, North Korea is failing...The Jews, no?

Anonymous said...

Since when do the Jews dominate the economy of Argentina? And what do the Jews have to do with the Kirchner administration's decision to start a trade-war with China (I might add that Kirchner and his wife are not Jewish by either religion or ancestry).

J said...

This year Argentina produced 56 million tons of soyabeans. To whom it is going to sell it if not to China?

Anonymous said...

Ha, ha the Chinese are concerned because their imports are adulterated - pot, meet kettle.

It is fairly common for trade partners to retaliate if they feel the partner has taken an unjustified action (e.g. if the hexane finding is just a pretext to favor Chinese farmers). But Argentina has always tried to punch above its weight and almost always gets slapped down as a result. They never seem to learn.

K

J said...

If you look well, you'll always find some machine oil in food products.

Ronduck said...

Here's a quote from the wiki article on Hexane:

In the industry, hexanes are used in the formulation of glues for shoes, leather products, and roofing. They are also used to extract cooking oils from seeds, for cleansing and degreasing all sorts of items, and in textile manufacturing.

The article also states that hexane is a major component of gasoline.

Anonymous said...

Machine oil (which is supposed to be food grade) is a different issue.

As Ronduck says, hexane (a component of gasoline) is an excellent solvent so is used to extract oils from ground oil seeds - this is the most widely used modern system all around the world and most cooking oil (unless it is labelled "expeller pressed") is made this way. Hexane does not have to be listed as an ingredient because it is all supposed to be removed (except for a small permitted residue). Normally in processing the hexane is removed from the oil as a vapor , re-distilled into a liquid and used again to dissolve the oils from the seed meal in a closed loop system . Even if some residue remains, if the oil is used for cooking, cooking temperatures would drive off the remaining hexane, which boils at 69C. If used unheated (e.g. for salad dressing), it would not be safe. If a lot of hexane is remaining then there was some problem with the oil extraction process - it is all (except for a few hundred PPM) supposed to be removed in processing. If the Chinese made an issue over less than 500PPM (which is considered a safe level) then they had some other agenda.

K

Anonymous said...

"Independent economic analysts said that China, the world’s biggest vegetable oil consumer, may toughen standards on imported soybean oil to slow shipments and absorb a domestic supply glut."

(Buenos Aires Herald)

In other words, Argentina is morally right - this has nothing to do with safety, just a typical Oriental pretext. But whether the Argentines have the clout to pull this off in the real world is another matter. If someone is trying to save face (by lying to you - this happens all the time in face cultures) it is considered very bad form to call them on the lie.

K