Ex-USTR official cautious on China ethanol outlook

Source: By Politico • Posted: Wednesday, February 24, 2021

It’s too early to tell what kind of long-term market China will be for U.S. ethanol, despite a recent report that it has bought a record 200 million gallons for delivery in the first half of 2021, former U.S. chief agricultural negotiator Gregg Doud said Tuesday. “My sense is that China really is trying to think through this whole notion of infrastructure for the use of ethanol,” Doud said during a discussion hosted by the Farm Foundation. “You know, it took us a long time to build that infrastructure in the United States.” China is weighing that investment against how much it wants to rely on electric cars, he said. But during negotiations on the “phase one” U.S.-China trade deal, “we spent a lot of time … talking about ethanol trade between our two countries,” Doud said. “And my sense is that China is very interested in this.”