Chinese buyers asking about US soya beans, pork before trade talks

CHINESE importers are asking US suppliers for prices of soya beans, pork and other farm goods, the Commerce Ministry said yesterday, in a possible goodwill gesture ahead of talks aimed at ending a tariff war.

The statement followed President Donald Trump’s decision on Wednesday to postpone a planned October 1 tariff hike on Chinese imports.

The gestures appear meant to reduce tensions ahead of the October negotiations over trade and technology. But the two sides have given no sign of progress towards ending an escalating dispute threatening global economic growth.

“Chinese enterprises have started to inquire about the price of American farm goods including soya beans and pork,” ministry spokesperson Gao Feng said at a news briefing.

Asked whether the purchases were part of a deal to relax US sanctions against Chinese tech giant Huawei, Gao said: “I don’t know that such negotiating conditions exist.”

Chinese leaders are resisting US pressure to roll back plans for government-led creation of global competitors in robotics and other industries.

Washington, Europe, Japan and other trading partners say those plans violate China’s market-opening commitments and are based on stealing or pressuring companies to hand over technology.

Trump said the delay in tariffs due to be imposed October 1 was a “gesture of good will”. Instead, the penalties take effect on October 15.

Trump has imposed or announced penalties on about $550 billion (R8 trillion) of Chinese imports. Tariffs of 25% that were imposed previously on $250bn worth of Chinese goods were due to rise to 30% on October 1.

China has raised duties on about $120bn of US products. Some have been hit with increases more than once, while about $50bn of US goods are unaffected, possibly to avoid disrupting Chinese industries.

Washington also imposed curbs on sales of US technology to Huawei, one of the biggest makers of smartphones and telecoms switching equipment. The company, China’s first global tech brand, has warned that its smartphone sales will be hurt badly if the controls take effect.

The two sides are expected to meet in Washington early next month but haven’t announced a date.

By delaying his tariff hike, Trump allowed for the possibility they might make enough progress to avert the increase indefinitely. | AP