China signals soybean demand to spark ‘many deals’ with US – if prices are right

After China and the US reached an agreement on soybeans, Beijing has signalled its intent to seek favourable terms, with the scale of future imports dependent on the competitiveness of American crops, a commerce official said.

“With the adjusted tariffs, China will encourage companies to import agricultural products from the US in line with market principles,” said Chen Chao, director general of the Department of American and Oceanian Affairs at the Ministry of Commerce, in a speech at the China International Import Expo (CIIE) in Shanghai on Thursday.

“As long as the price is competitive, the quality is good and supply is sufficient, I believe Chinese companies will reach many deals or sign intentions with US exporters and farmers,” he added, noting that China had a “massive” need for soybeans.

Soybeans and other agricultural products have been a point of contention in the US-China trade war, while both countries exchanged trade restrictions and threats last month on issues ranging from tariffs to rare earths. But a meeting between the two presidents on October 30 concluded with a series of agreements, including a pledge from Beijing to resume imports of the crop.

A White House fact sheet released last week stated that China would buy at least 12 million tonnes of US soybeans in the final two months of this year, and at least 25 million tonnes annually for the next three years.

On Wednesday, China also announced it would remove additional tariffs of up to 15 per cent on some US agricultural products, effective on Monday. For US soybeans, Beijing removed 10 per cent of the additional tariffs imposed earlier.

  

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