As trade talks loom, Chinese firms look into buying U.S. farm goods
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[September 12, 2019] By
Stella Qiu and Dominique Patton
BEIJING (Reuters) - Chinese companies have
started to inquire about prices for U.S. agricultural goods purchases,
Beijing said on Thursday, in a further sign of potential de-escalation
in the bitter and protracted trade war between the world's two largest
economies.
The move comes before a planned meeting in early October between top
U.S. and Chinese trade negotiators in Washington aimed at easing a trade
conflict that has disrupted global supply chains and rattled financial
markets.
On Wednesday, Beijing and Washington both made concessions on planned
tariffs, helping lift global stocks as well as China's yuan currency.
Speaking at a weekly news briefing in Beijing on Thursday, Chinese
Commerce Ministry spokesman Gao Feng said China welcomed the U.S. move.
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"According to my understanding, Chinese firms have started to inquire
about prices for U.S. agricultural goods. (China) hopes both sides would
continue to meet each other half way and adopt concrete actions to
create favorable conditions for negotiations," Gao said.
Possible purchases of U.S. farm goods included pork and soybeans, Gao
said, both of which are still subject to hefty Chinese duties.
Despite tariffs of 62% in place since last year, U.S. exports of pork to
China jumped 51% in the first seven months of 2019 over last year to
240,000 tonnes, according to the U.S. Meat Export Federation.
In July alone, the United States exported about 3,000 containers, or
almost 61,000 tonnes of pork, as buyers stepped up purchases amid a huge
shortfall in China due to a massive outbreak of African swine fever that
has driven prices to record levels.
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China's Ministry of Commerce spokesperson Gao Feng attends a news
conference at the commerce ministry in Beijing, China, June 19,
2018. REUTERS/Thomas Peter/File Photo
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China reduced purchases of U.S. farm products in August, after U.S. President
Donald Trump vowed to impose new tariffs on around $300 billion of Chinese
goods, blaming Beijing for not having fulfilled a promise to buy large volumes
of U.S. farm products and abruptly dimming prospects of a trade deal.
Gao said working-level teams from both countries would meet soon to prepare for
the next round of top-level talks between Chinese Vice Premier Liu He, and U.S.
Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
On Wednesday, the United States agreed to delay increasing tariffs on $250
billion worth of Chinese imports from Oct. 1 to Oct. 15 "as a gesture of
goodwill." The tariffs on those goods were set to increase to 30% from 25%.
Earlier on Wednesday, China announced it was exempting 16 types of U.S. products
from tariffs, including some anti-cancer drugs and lubricants, as well as animal
feed ingredients whey and fish meal.
(Reporting by Stella Qiu, Ben Blanchard, Michael Martina, and Dominique Patton;
Editing by Muralikumar Anantharaman and Mark Potter)
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