China increases US soybean imports

Chinese state media said last Sunday (07/28) that the United States (US) had shipped millions of tons of soybeans to China, especially after the leaders of the two countries met in June; however, the US government data show a much lower volume for imports.

The trade war between the United States and China has restricted US agricultural exports to the Chinese, with soybean sales falling since Beijing placed 25% tariffs on US shipments.

According to the latest USDA data, only 1.02m tons of soybeans have been shipped to China since the G20 meeting on June 28 until the week ending July 18. These shipments reflected purchases made earlier this year. The USDA is due to release of new data this week.

Chinese television channel CCTV said the Asian country ordered the US suppliers about buying soy, cotton, pork, sorghum, and other agricultural products since July 19.

“As long as US agricultural products are reasonably priced and of good quality, new purchases will continue,” the report said. The companies involved in the sales have requested exemptions from tariffs on agricultural products from Chinese customs, according to TV.

Jim Huang, chief executive of China-data.com.cn, an independent agriculture consultancy, said the purchases would be made by “state-owned companies and other major players, based on prices and demand. So the process will not be so fast”.

“China is sincere in its negotiations with the US and is offering goodwill gestures,” Huang said.

According to CCTV, the move would show China’s willingness to promote US products and live up to the consensus reached between presidents Donald Trump and Xi Jinping at the G20 summit in Osaka in June.

Chinese and US negotiators are expected to meet in Shanghai this week for the first time since the summit, with talks scheduled to begin on July 30.

Earlier this month, the Trump government said it would exempt a relatively narrow list of 110 Chinese tariff products, including medical equipment and critical capacitors.

The state media reported on Sunday, “take concrete steps to implement its relevant commitments and create favorable conditions for bilateral economic and trade cooperation.”

Meanwhile, customs data released on Saturday showed that China received 614,805 tons of US soybeans in June, down 2.5% from June 2018 and down 37% from 977,024 tons in May.

Source: Reuters

Sharing is caring!