By Seth Millstein for Sentient.
Broadcast version by Suzanne Potter for California News Service reporting for the Sentient-Public News Service Collaboration
The largest pork producer in America is owned by a Chinese company, and a lot of people don’t like that. Critics of the corporate acquisition that took place in 2013 argued that Smithfield Foods’ Chinese ownership was a national security threat. Now, a political action committee is building on that sentiment — warning that Congress is being lobbied by Smithfield and other pork industry groups to slip language into the Farm Bill to gut the animal welfare protections of California’s Proposition 12. If successful, the PAC argues, this Smithfield-supported reversal of Prop 12 could multiply the threat to national security even more. But there are other major problems with the company that long predate any Chinese involvement.
“I hope that everyone will really wake up and realize what a tremendous threat it is right now in 2025 for us,” Marty Irby, the head of Competitive Markets Action, a political action committee devoted to defeating the EATS Act, tells Sentient. Proposed in 2023, the EATS Act contains language that pork industry trade groups are urging Congress to include in the Farm Bill. “It’s very serious, and it’s not something to take lightly,” says Irby, who has previously been a lobbyist for the Humane Society Legislative Fund.
But does Smithfield’s Chinese ownership really pose a threat to everyday Americans? Let’s jump in.
Smithfield’s Chinese Ownership, Explained
Founded in Virginia in 1936 as a meatpacking company, Smithfield Foods steadily grew over the decades to become one of the biggest meat producers in the country. But in 2013, WH Group, formerly known as Shuanghui International Holding Limited, one of China’s largest meat producers, purchased Smithfield outright for $4.7 billion.
It was the largest-ever Chinese acquisition of an American company, and was highly controversial in America. The central concern among critics has remained largely the same in the years since: that giving China control over such a huge chunk of America’s pork supply represented a threat to American food security.
But what exactly does it mean to say that “China owns Smithfield?” Does the Chinese government itself run the company, as many critics have alleged, or is it just private citizens and businesspeople?
The answer isn’t straightforward. On the one hand, WH Group is a private company that’s traded on the Hong Kong stock exchange. Smithfield CEO Larry Pope testified to Congress in 2013 that WH Group was not managed or run by the Chinese government, and Smithfield itself is still managed by American executives.
But according to a 2015 investigation by the Center for Investigative Reporting (CIR), WH Group does not operate independently from the Chinese government — at least, not entirely.
To begin with, the state-owned Bank of China facilitated the Smithfield purchase by giving WH Group a $4 billion loan. And although the company operates with a large degree of autonomy, it’s still required to adhere to the general goals outlined in the Chinese government’s five-year plan, and is expected to follow any directives it receives from the government to that effect.
To be sure, this isn’t specific to WH Group. The Chinese government is closely involved with all of its domestic industries, and regularly plays an active role in the running of private enterprises. The real question, at least insofar as Smithfield goes, is what this means for Americans — and Americans’ food supply.
Why Do People Object to Chinese Ownership of Smithfield?
While Smithfield’s Chinese ownership has drawn controversy for a number of reasons, most criticism focuses on two topics: national security and American workers.
National Security
After purchasing Smithfield in 2013, WH Group owned one-in-four pigs raised in the U.S., according to a 2015 report. Many fear that giving a foreign company this much control over America’s food supply poses a national security risk, as it could imperil Americans’ access to domestically produced food.
“If we get into some sort of world disaster, or a situation where there’s [food] scarcity — it could even be another COVID-19 — where do you think China’s going to send their pork? They’re going to send it back to China,” Irby says. “I think that’s very detrimental to our own population, as far as having the affordable food that we need to put on the table out there in times of crisis.”
At least one agricultural economist disagrees, however. “Chinese ownership of agricultural land does not threaten our ability to produce food,” agricultural economist David Ortega wrote in an op-ed at The Hill in 2024. “Food insecurity arises in our country not because of production deficits, but because of issues of affordability and access facing consumers.”
The U.S. is the third-largest pork producer in the world, and already exports around one-third of the pork it produces domestically. In an emergency situation, the federal government could simply put a temporary ban on pork exports, which would immediately increase the domestic supply of pork for Americans.
American Workers
Irby also argues that American farmers suffer due to Smithfield’s Chinese ownership, as the company’s profits no longer flow to Americans.
“We have American-owned companies and American producers that are out there that are struggling,” Irby says. “You’re seeing Smithfield and China now making the profits, and the American family farmer breaking even.”
There’s no question that small farms in America have been on the decline for some time now. The agricultural sector is highly concentrated, with the bulk of the profits going to a handful of large producers, and this trend has worsened over time.
Over the last 30 years, the farmer’s share of each retail dollar spent on their products has fallen by 20 percent, according to government data, and many operators of small- and medium-sized farms now earn less than $10,000 a year just from their operations — a figure that’s even lower when taking into account household expenses and debt obligations.
Family farmers have been feeling the economic squeeze for decades now, in other words, due to factors that long predate China’s purchase of Smithfield. The number of hog farms in the U.S. has been steadily declining since at least the 1990s, and so have hog farmers’ profits
Smithfield Foods, Animal Welfare and Proposition 12
While it hasn’t drawn quite as much attention, China’s ownership of Smithfield Foods has also raised concern for the welfare of the animals under the company’s control.
Although America doesn’t have particularly strong animal protection laws, the parameters of meat production in the U.S. have been restrained, albeit to a small degree, by California’s Proposition 12, which banned the extreme confinement of certain livestock (including pigs) and, crucially, prohibits the in-state sale of meat products that were produced using extreme confinement measures, even if raised in other states or countries outside the U.S.
Because California is such an enormous market, that second part of the law has resulted in meat producers across the country (and beyond) modifying their production standards to give pigs and other animals more space.
China, on the other hand, doesn’t have any livestock protections at all. There’s no requirement that animals be stunned, anesthetized or rendered unconscious before they’re slaughtered, let alone given enough room to live comfortably. Pigs raised for meat in China are crammed into enormous high-rise buildings, sometimes referred to as “hog hotels,” in which tens of thousands of pigs languish at any given time.
“Those animals are in duress,” Irby says of the pigs raised in Chinese slaughterhouses and other facilities that aren’t Proposition 12-compliant. “We believe that farmers should be able to raise a pig in an open pasture, or at the very least, have enough room for the pig to stand up and turn around,” says Irby. The sentiment does not appear to be shared by industrial pork operations, either in the U.S. or China.
Although Smithfield Foods is owned by a Chinese company, it still has to comply with Proposition 12’s regulations, as the meat it produces is sold in California.
That’s where the language of the EATS Act comes into play. If passed or, more likely, if its language is included in the next Farm Bill, the move would overturn Proposition 12, as well as over 1,000 other state and local laws that regulate animal husbandry.
The Real Enemies: Pollution and Price Fixing
Although Smithfield’s Chinese ownership has stirred up a good amount of controversy, there are some other glaring problems with the company that have nothing to do with China, and which have received comparatively little press coverage.
Smithfield’s Pollution
Hog farms are responsible for a range of environmental impacts. They pollute the water, release greenhouse gases and stink up the air.
Smithfield is no different, and has been especially prolific in this regard. In 2022, a report by the Socially Responsible Agriculture Project revealed that 21 of the company’s pig farms in Missouri had spilled over 7 million gallons of waste into surrounding communities over the preceding three decades. That same year, a Smithfield farm in the state was fined $18,000 for spilling 300,000 gallons of manure into nearby creeks.
The company has lost several multi-million dollar lawsuits relating to the degradation of air quality and living conditions in the communities around its farms. In 2018 and 2019, it was fined for water pollution violations at one of its South Dakota facilities, and according to estimates by the Institute for Agricultural and Trade Policy, the company emits around 30 million metric tons of CO2 every year.
Price-Fixing
Smithfield Foods has also been accused of — and paid the price for — price-fixing on more than one occasion.
In 2023, the company agreed to pay $75 million in settlements after a group of purchasers accused it of artificially restricting its supply of pork in order to inflate prices. This was unrelated to the $42 million settlement the company paid the year before to restaurants and caterers, who also accused the company of price-fixing to boost its profits.
It’s worth noting that the purchasers in question accused Smithfield of engaging in this market manipulation since 2009 — long before China had anything to do with the company. The terms of the settlement did not require Smithfield to acknowledge any fault, however.
This intersects with the broader issue of monopolization in the meat industry, and the related issue of consolidation, in which large agricultural conglomerates like Smithfield either acquire smaller farms or put them out of business, resulting in less competition and more concentration of wealth and power in the hands of the largest agricultural companies.
“If they gain more market share, it’s just going to enable them to basically drive up the prices and demand what price they want,” Irby says. “We’ve seen it in so many other areas: The larger share of the market that a company owns, the more that they’re going to go in and drive up the price, because they can.”
The Bottom Line
As the largest-ever acquisition of an American business by a Chinese business, WH Group’s purchase of Smithfield Foods was undoubtedly a landmark moment in American business and agriculture.
The company’s foreign ownership has made it a lightning rod for criticism. Smithfield has been credibly accused of price-fixing on several occasions, and has paid millions and millions of dollars as a result. But most of the company’s practices are standard for an industrial meat conglomerate, regardless of whether it is owned by a Chinese firm or not.
Seth Millstein wrote this article for Sentient.
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By Lisa Held for Civil Eats.
Broadcast version by Mark Moran for Iowa News Service reporting for the Solutions Journalism Network-Public News Service Collaboration
Like so many people whose lives were upended during the pandemic, Sean Dengler returned to his roots. In 2020, he went back to northern Iowa and joined his father in farming 500 acres of corn and soybeans.
As he learned the ropes, he began engaging with Practical Farmers of Iowa (PFI), a unique organization that attracts out-of-the-box thinkers and tinkerers across a wide spectrum of sustainable agriculture in the Midwest. Soon, he was reading about neonicotinoids—“neonics” for short—now the most common chemicals used to kill bugs in American agriculture.
Farmers can spray them on fields, but these insecticides are also attached to seeds as an outer coating, called a seed treatment. As the seeds germinate and grow, the plant’s tissues become toxic to certain pests.
However, neonics impact beneficial insects, too, like bees and other pollinators. Newer research also shows neonics threaten birds and some mammals, suggesting potential human health impacts. In 2023, the U.S. Environmental Protection Agency (EPA) found that the three most common neonics were each likely to harm more than 1,000 endangered species. Also, neonics move through soil into groundwater, contaminating rivers and streams in the Midwest and beyond. Data from 2015 to 2016 showed about half of Americans over three years old were recently exposed to a neonic.
Dengler suspected he had been planting neonic-treated seed, but he wasn’t sure exactly which chemicals the colorful coating was meant to warn him of. He also had no idea if it would be possible for him to order seeds without the treatment. “The corn is usually either red or purple when it comes,” he said. “That’s how it’s always been. You just get it that way.”
In numerous interviews over the past year, other farmers, researchers, and industry insiders described the same scenario to Civil Eats. While the agrichemical industry claims farmers “carefully select the right pesticide for each pest and crop at issue” and “only use pesticides as a last resort,” when it comes to neonics, that is false in most cases. Nearly all commodity corn farmers receive seed coated with neonics at the start of each season; many cannot identify the chemical that’s in the coating and don’t even know if another option exists.
These findings are significant for a few key reasons.
First, the pesticide industry often calls seed treatment environmentally beneficial because it reduces the amount of insecticide applied per acre compared to spraying. This is true. But research shows that the preemptive coating of seed with neonics has resulted in farmers using insecticides, overall, on significantly more total acres than they were a few decades ago. A 2015 study published by researchers Maggie Douglas and John Tooker at Penn State University found that neonic seed treatments are now used on almost triple the area that had once been sprayed with insecticides, indicating their negative impacts could be more widely distributed.
Second, a significant portion of that use may be for nothing. In corn and soy fields, new research and evidence accumulated over the last few years suggest that widespread use of neonic-treated seeds provide minimal benefit to farmers. One study from Quebec helped convince the Canadian province to change its laws to restrict the use of neonic seed treatments. After five years and a 95 percent drop in the use of neonic-coated seeds, there have been no reported impacts on crop yields.
But based on conversations with farmers and other industry insiders, agrichemical companies that sell seeds and pesticides continue to steer farmers toward using neonics on their seeds—and sometimes, there are no other options available. “They scare the farmers and say that you’re going to lose your yield, that you’re going to have crop failure, and the whole grain sector will just collapse,” said Louis Robert, a Canadian agronomist who previously worked for the Quebec government, where he revealed pesticide-industry meddling in research on neonics’ environmental harms. “They go very far in terms of misleading people.”
At the same time, the industry has engaged in a broad, sophisticated lobbying and public relations effort to block regulation in the U.S., muddy the research waters, and even influence Google search results for neonics, all of which has been documented in depth by The Intercept.
So, while Europe and Canada have been moving away from the widespread use of neonics, the U.S. has barely budged in its approach. Neonic-treated seeds are planted on nearly 90 million acres of corn fields and more than 40 million acres of soybean fields each year. Only New York and Vermont have passed bans that include eliminating them as coatings on corn and soy seeds—and those laws do not go into effect until 2029. (Neonic treatments are common on many other seeds, including wheat, cotton, and vegetables, and farmers’ reliance on them varies across different crops. This investigation focused only on corn and soy, by far the two most widely planted crops in the country.)
Over the course of three weeks in October, Civil Eats sent at least four interview requests and detailed questions to CropLife America, which represents the pesticide industry, but did not receive a response. We also sent emails to press contacts at the companies that make or sell pesticide and seed products mentioned in this story: Corteva (which owns Pioneer) and Winfield United (owned by Land O’Lakes) did not respond. A spokesperson for Syngenta directed Civil Eats to “Growing Matters” and sent a statement that reads, “Planting seeds treated with crop-protection products is a more precise way for farmers to protect their crops from early season pests and diseases. As you can see from our global Seedcare Institute website, Syngenta is a leader in providing treated seeds of the highest quality and committed to helping farmers achieve their yield goals sustainably.”
No Knowledge, No Choice
For many years, Kynetec, a global data company, asked farmers to share which insecticides were on their seeds and then provided the federal government with estimates of how many acres were being planted with the chemicals included. But because farmers were so often unable to name the specific chemicals, it was impossible to warrant a reliable data set. They stopped in 2014.
A few years later, in a 2020 paper, researchers reported in the journal Bioscience that only 65 percent of corn growers and 62 percent of soybean growers could name the seed treatment product they were using. Even if they did know the product, that didn’t mean they knew what was in it. In fact, in 15 to 35 percent of cases, corn growers incorrectly identified the pesticides included in the treatment.
It speaks to why Damon Smith’s colleagues at the University of Wisconsin’s Nutrient and Pest Management Program dreamed up a resource dubbed “What’s on your seed?” When Smith, a biologist who studies field crop diseases, started working on it around 2010, the document was a page or two long, and they updated it every few years. Today, it’s a six-page PDF that the team updates at least once a year to keep up with new seed treatments hitting the market.
Very few of those are new chemicals entirely. Most are new combinations of a neonic (or another insecticide) paired with anywhere from one to four fungicides, and maybe a nematicide, a chemical that targets pests called nematodes.
“There’s quite a few products out there, and it’s gotten increasingly complicated,” Smith said.
Sales agronomists who work for seed companies, farmers said, sell product packages based mainly on their marketed “yield potential” and are unlikely to talk up the names of pesticides included in the coating. And they emphasize the need for seed coatings as insurance against crop loss.
“The way it often gets marketed to [farmers] is, they get one chance a year to get it right,” explained Mac Erhardt, co-owner of Albert Lea Seed, a small, family-owned seed company based in Minnesota and Iowa. “The big chemical companies have been pretty successful at distributing counter-information where they show, ‘Well, if you plant naked seed, you’re giving up five bushels an acre.’” Six or seven years ago, before his company made a full switch to selling non-GMO and organic seeds, Erhardt said his contracts with big seed companies required him to treat corn seed with neonics before selling it.
With soybeans, the system works a little differently, and farmers are able to select seed treatments at the time of sale.
One Iowa farmer, who asked not to be named, compared the process to a car wash. “You can pick what you want on the screen, and then it formulates it and puts it through,” she said. Instead of exterior, interior, and a wax, it’s neonicotinoid, fungicide, and a nematicide.
Still, farmers said they almost always defer to the seed dealers and are often unaware of what the treatments they’re selecting consist of. “From a farmer’s perspective, we want a seed to be protected, so we just trust that whatever potion they put on the seed, it’s going to be okay. They’re not in the business of selling seed that will yield less, so we just put our trust in them,” she said. “If we had real choices, those that know insecticides like neonics are harmful, we’re not going to push that button.”
Fears About Speaking Out Against Treated Seeds
Pesticide companies are so entrenched in the culture of agricultural communities, asking questions about insecticides and their merits or detriments also can feel taboo. One reason this farmer did not want to be named was because she thought, with all of the seed contracts she’d signed over the years, that it was possible she had signed a non-disclosure agreement without realizing it.
For others, it’s much more personal. After Frank Rademacher, who has been farming corn and soybeans with his dad in east-central Illinois since 2018, talked about neonics to a reporter at a farming publication, another farmer yelled at him in public and accused him of hurting agriculture.
Rademacher said that many farmers he encounters have a vague, visceral sense that there may be risks associated with the colorful dust that blows into the air as the high-powered vacuum system shoots seeds into the ground and the tractor shakes and bumps around. But pesticides are so commonplace that at a forum he attended, farmers laughed about which ones cause rashes and which lead to headaches. With neonics, he said, they’re grateful to have insecticides that are not as acutely toxic as the ones their parents handled. If they try not to touch the seeds with their bare hands or breathe too much of the dust in, it feels like enough.
“The products that they were using growing up, they were just horrible,” he said of farmers in their 50s and older like his dad, who might have been exposed to insecticides like DDT, malathion, and chlorpyrifos that have now been banned or phased out. “This is kind of an invisible issue. It takes away a lot of the acute exposure, and what you trade is the long-term personal and environmental low-level exposure.”
Sean Dengler worried that even asking questions about neonics when buying his seed would upset others in his small farming community, some of whom he had known since childhood and considered friends. “My dad’s very conventional, and I don’t wanna make him feel uncomfortable in that way. It’s kind of like a peer pressure type of thing,” he said. But Dengler recognized the power that gave the industry. “It’s a good thing for big business. You get everyone on one side, and you can’t have people think differently.”
With the name of Dengler’s product in hand, Civil Eats tried to find out for him if the soybean treatment he had used contained a neonic. Because it was a newer product and wasn’t yet listed in Damon Smith’s resource, it took significant searching and emailing to track down the chemicals included. The insecticide was thiamethoxam—one of the most common neonics.
Later, Dengler got his chance to ask about what was included in his corn seed treatments. Attending a plot tour hosted by Pioneer, one of the major seed companies, he learned that the corn seed had “seven fungicide treatments and two insecticide treatments on it. That’s the first time during my farming career I heard anything about it,” he explained by email to Civil Eats.
Leaving Neonic-Coated Seeds Behind
For those who do decide to swim upstream, the current encouraging them to stay the usual course is strong.
“Even though there’s data showing that, ‘Hey, with a few tweaks, you can change your farming practices and you don’t need to use insecticides on your seed,’ [farmers] still want that protection. They don’t want that one-out-of-every-10-years problem,” said Erhardt, from Albert Lea Seed.
That rare issue is the sticking point: Neonics are very good at killing some pests that can cause serious damage to crops, and companies are quick to point to that. One industry document created by CropLife to promote neonics on seeds highlights a study that found the number of plants that survived the season increased 18 percent, and crop yield increased by 12 percent, “when neonicotinoid-treated corn seed was planted into corn fields with high wireworm populations.”
In other words, if you use neonics in a field infested with wireworm, it really helps. But using it on every field preventatively is like taking an antibiotic every day in case an infection pops up at some point. “Most of the pests that neonics really work well on are highly sporadic,” said Maggie Douglas, who is now an assistant professor of environmental studies at Dickinson College. “The question is: How many farmers are having a seedcorn maggot infestation in their field in a given year?”
Seedcorn maggots are dreaded for their ability to burrow into seeds and kill a crop off the bat. But in New York, at least, there’s a clear answer. As the campaign to pass a law banning the use of neonicotinoid coatings on corn and soybean seeds heated up, farm groups were concerned, specifically, about how they’d control the pest.
So, researchers at Cornell University’s College of Agriculture and Life Sciences set out to quantify how big the problem was. They set up ten one-year trials in four different locations across the state, comparing neonic-treated fields to fields planted with alternative seed treatments. After they pooled and analyzed the data, their preliminary conclusions were that there were no significant differences and that overall, “seedcorn maggots were not a factor in establishing corn” in any of their trials. (They expect to release final results from three years of trials this winter.) In Quebec, researchers did find seedcorn maggot infestations that caused damage to young corn plants, but at the end of the day, the infestations still didn’t result in yield losses.
Another big hurdle facing farmers who want to move away from neonics is that they would also likely have to switch to non-genetically modified seed, said Rademacher. “I’m not aware of any seed company that that offers untreated seed in a GMO variety,” he said.
If it was available, he would likely know. Not only does Rademacher have a degree in crop science with a focus on pest management, he also has an off-farm job as a conservation agronomist for The Nature Conservancy. In his own fields, he began implementing all kinds of conservation practices and, to ditch neonic coatings on his corn, was able to navigate the accompanying switch to planting non-GMO seed. But even a neonic-skeptical farmer would likely balk at giving up the protection against other pests that genetic modification enables. For example, if corn seed is not genetically modified to withstand glyphosate, the active ingredient in Roundup, farmers would have to stop spraying the widely used weedkiller to avoid killing their corn.
“You’re asking people to make not just one big shift but potentially two or more big shifts,” he said. “It’s all or nothing.”
One compelling reason to make the switch is cost savings. In Quebec, a group of farmers convened by the University of Vermont last spring all said their seed costs $10–$20 less per bag now that they’re not paying for the neonicotinoid coating. In Iowa, the farmer who paid to have her soybeans coated said she was charged $2/acre—or $1,000 extra for a 500-acre field. According to U.S. Department of Agriculture estimates, seed treatment “may account for around 15 percent of the seed price.”
That got Dengler’s attention. With a degree in finance, he was particularly interested in opportunities to cut costs on the farm, and he was intrigued by a PFI farmer who conducted his own field trials on neonics. The results showed that the treatment applied to his soybean seeds might not be necessary: The farmer planted beans without the coating, the plants stayed healthy, and crop yields didn’t drop.
“When you tie in the environmental impact of the seed treatment on the soybeans, I was like, ‘I’ll even take a bushel or two less, just because I believe that I’m doing the right thing,’” he said. While he couldn’t see how to do it with corn, he started opting out of neonic treatments on his soybean seeds.
After harvest ended, he reported that all but one of his soybean fields yielded better than last year. But a clear takeaway on whether his choice to forgo neonics had an impact would be tough, he said. For one, growing conditions were better this season. Both years were dry, and wet conditions are often what precipitate early-season insect issues. So far, based on the lack of a clear difference, he said adding the neonic treatments “doesn’t seem worth the pay or environmental impacts.”
Meanwhile, Rademacher is a few years in. Since planting seeds without neonic coatings, he said his yields might vary a few bushels here or there, but it’s nothing significant.
However, he didn’t just change his seeds and continue farming the same way. Instead, he’s investing in an entirely different method of pest control. “As counterintuitive as it seems, our system is to promote insects. We have no tillage, so we don’t destroy their houses every year, and we provide year-round habitat via cover crops,” he said. Each small change adds up, and now, he and his dad are seeing significant numbers of beneficial insects returning, which keeps the bad guys in check.
In fact, the research that first spurred Douglas’ interest in neonics was on this very topic: In the lab, she accidently discovered that neonics were killing the beneficial beetles that prey on the slugs destroying Pennsylvania farmers’ yields—but not the slugs themselves. The discovery led her to a research trial that ultimately found that in their specific region, neonic treatments could actually reduce yields.
Further north, Quebeçois farmers have the biggest head start. During the University of Vermont panel, one said he had learned a simple trick since ditching neonic seed treatments: He waits to see when his neighbor—an organic farmer—is ready to plant, and he follows his lead. That simple adjustment allows him to sidestep early season pest risks.
For agronomist Louis Robert, the success of the Quebec government’s decision to move away from neonics on corn and soy seeds is apparent not in what’s being said, but in the silence. After five years, farmers aren’t talking about crop failure at their local meeting places, he said, and he hasn’t seen any media coverage of the neonic ban. Farmers can apply to use neonic-treated seed if they document a need, but almost no one’s doing so, he added.
“The most reliable proof is that it’s not even a matter of discussion anymore,” Robert said. “Today, as we speak in 2024 in Quebec, over half of the corn and soy acreage doesn’t carry any insecticide, and we’re going to have a fantastic year in terms of yield. So, the demonstration is right there in front of you.”
Lisa Held wrote this article for Civil Eats.
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