China still considering curbs on US soybean imports: industry council

China is still considering import curbs on US soybeans in retaliation for moves by Washington to impose trade tariffs, US Soybean Export Council Asia director Paul Burke said, following a meeting with the Ministry of Agriculture and Rural Affairs.

The ministry requested an informal meeting in Beijing with the council, Burke told Reuters by phone. The meeting, which took place on Monday, was attended by the US trade group’s China director, Zhang Xiaoping, along with officials from the ministry’s department of international relations.

In his comments, Burke rejected a report in Hong Kong-based South China Morning Post that the council’s meeting with the ministry had been part of official talks aimed at shielding US soybeans.

“The agriculture ministry wanted to discuss our view of the soybean industry regarding tariffs and the supply and demand situation,” Burke said on Thursday. “We are cautiously optimistic soybeans won’t be targeted, but they’re still on the table.”

A trade spat between the world’s top two economies is escalating, with US President Donald Trump preparing to slap tariffs on $50 billion in Chinese imports over the alleged forced transfer of intellectual property.

Soybeans were the top US agricultural export to China in 2017, worth more than $12 billion. China is the world’s biggest soybean importer and the US is its second-largest supplier.

Chinese State media have suggested that the country could target a broad range of US businesses from agriculture to aircraft, autos and semiconductors if the conflict escalates.