China likely to resume farm trade with US, but uncertainties persist

China has imported 20 million tons of soybeans from the US so far this year and will accelerate agricultural imports. Experts said imports of agricultural products may return to the pre-trade war level in the short run, but uncertainties persist over other aspects of the trade relationship between China and the US.

Since the beginning of the year, Chinese companies have purchased agricultural products that include 20 million tons of soybeans, 700,000 tons of pork, 700,000 tons of sorghum, 230,000 tons of wheat and 320,000 tons of cotton from the US, Chinese Foreign Ministry spokesperson Geng Shuang said at a press briefing on Tuesday.

China is an important destination for agricultural exports, especially soybeans from the US, but such deals have severely slipped amid the trade war. In 2018 China imported 16.6 million tons of soybeans from the US, dropping 49.4 percent from 2017, according to statistics from the Ministry of Agriculture and Rural Affairs.

“Based on the needs of the domestic market, Chinese companies have been independently purchasing agricultural products from the US in a market-oriented manner,” Geng said. “China will accelerate the import of US agricultural products.”

In response to questions on whether China and the US hold the same attitude toward the deal, Geng noted that China and the US are unanimous in reaching an economic and trade agreement.

“This agreement is of great significance,” Geng said. “It will be beneficial to China, the US and the world with regard to the economy, trade and peace.”

The consensus so far represents the strongest willingness to resume the trade in agricultural products on both sides, Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times.