China Seeks Argentine Agricultural Products to Replace U.S. Imports

China has signed a letter of intent with exporters in Argentina to purchase approximately USD 900 million (BRL 5.1 billion) worth of soybeans, corn, and vegetable oil. It is the latest sign that the Asian nation is steering away from sourcing these products from the United States amid the trade war sparked by President Donald Trump.

Chinese officials traveled to Buenos Aires on Wednesday to sign the non-binding agreement, according to two people familiar with the matter who spoke to Bloomberg anonymously due to the private nature of the discussions. Argentine newspaper Clarín was the first to report the deal.

China is already the largest buyer of unprocessed soybeans from Argentina and Brazil. In addition, Beijing—already a customer of Argentine soybean oil—opened its market to Argentine corn last year.

Although this is not the first agreement of its kind, such a large and early commitment from China for Argentine agricultural goods is unusual. Its realization amid the escalating trade war signals that China is willing to maintain tariffs on U.S. imports—in retaliation for duties imposed by Trump on Chinese goods exported to the U.S.—and instead turn to South America for agricultural supplies.

Chinese trading firm Cofco International stated today in a press release from its Buenos Aires office that it has reached an understanding with Sinograin, the state-owned company managing China’s strategic food reserves, to “expand the supply of agricultural commodities from Argentina to China and explore long-term cooperation.”

Meanwhile, China’s Fufeng Group Ltd. is reportedly interested in building a corn processing plant, according to a post by the Argentine Rural Society on X (formerly Twitter) last month.

Source: O Globo

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