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Abstract
China is both the world's largest producer and consumer of wheat. In an attempt to gain a larger slice of the
important Chinese market, both the European Community and the United States have offered China subsidised
wheat. In addition, other exporters have offered attractive credit arrangements to China. The objective of this paper
is to measure the overall impact of these policies on each exporter's share of the Chinese market. To that end, an
improved version of the constant market shares model is applied to data on Chinese wheat imports in the 1980's.
The results indicate that the United States has been outperforming the other exporters since subsidised US wheat
sales were authorised for China in 1987. The implications of the analysis for the smaller exporters and international
wheat trade are discussed.