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China Increases Soybean Purchases From The U.S. As Trade Talks Drag On

Reportedly, China is purchasing more soybeans from the U.S., since both countries try to attain an initial agreement on trade. During September–November 2019, Chinese imports of American soybeans surged 13 times as compared to the same period of 2018, as per to Xiaoping Zhang, the Regional Director (Greater China) for the USSEC (the United States Soybean Export Council). That is based on a study of U.S. and Chinese data. The soybean exports from the U.S. to China declined sharply in the second half of 2018 after Beijing slapped tariffs to Washington with its own duties. As an outcome, all Chinese procurers of U.S. soybeans in 2019 occurred through explicit arrangements, outside standard trade channels that otherwise subjected the imports to penalizing tariffs of about 30%, Zhang stated.

That trend was publicized, when China’s Ministry of Finance reported on its website that Chinese firms “independently import” specific amounts of the U.S. commodities and that the administration is working on waiving levies for some U.S. pork, soybeans, and other commodities, based on corporation applications. Long ago, Beijing has fostered to describe its U.S. agricultural commodities in vague terms, for example, “according to Chinese market requirements and market-based principles.” The two largest powerhouses globally have been trapped in a trade war for over a year, with each country imposing tariffs to billions of dollars of goods from the other.

On a similar note, White House advisor Jared Kushner stated that the US-China trade talks are going in “good direction.” The trade talks amid the U.S. and China are “directed in a good direction.” With financiers eyeing the trade discussions prior to the upcoming tariff deadline, the U.S. stocks settled lower recently. The Dow (Dow Jones Industrial Average) hit a 105-point decline. Kushner asserted if it’s the “right” deal for the U.S., President Donald Trump will sign an agreement with Beijing.

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