China plans to lift punitive tariffs on soybeans, pork

BEIJING — China will lift punitive tariffs imposed on U.S. soybeans and pork in a trade war with Washington, a state news agency said Friday, adding to conciliatory gestures by the two sides ahead of negotiations.

Beijing “supports domestic companies in purchasing a certain amount of U.S. farm produce,” it said, but it gave no details.

The move follows President Donald Trump’s decision Wednesday to postpone a planned Oct. 1 tariff hike on Chinese imports to Oct. 15.

Hopes are growing that the two sides might defuse the prolonged dispute that threatens global economic growth. But there has been no sign of progress on the main issues in their conflict over trade and technology.

Beijing’s decision to restore access to low-cost U.S. soybeans also would help Chinese pig farmers who use soy as animal feed. They are reeling from an epidemic of African swine fever that has caused pork prices to soar.

Calls to the commerce and finance ministries weren’t answered on Friday, a national holiday in China.

“China has a huge market, and the prospects for importing high-quality U.S. farm produce are broad,” the Xinhua news agency said. “China hopes the United States will be true to its word, make progress on its commitments and create favorable conditions for bilateral agricultural cooperation.”

Beijing imposed 25% tariffs on American farm goods last year in response to Mr. Trump’s tariff hikes on Chinese goods. Importers were ordered to stop buying soybeans, the biggest U.S. export to China.

China targeted farm goods, hurting rural areas that supported Mr. Trump in the 2016 presidential election.

Treasury Secretary Steven Mnuchin called Wednesday’s tariff delay by Mr. Trump a “goodwill gesture to the Chinese.”

The Commerce Ministry said Thursday importers were asking American suppliers for prices of soybeans and pork. It gave no indication whether they planned to place orders.

Washington wants Beijing to roll back plans for state-led development of leaders in robotics and other technologies. The United States, Europe and other trading partners argue those violate China’s free-trade commitments.

Some American officials worry they will erode U.S. industrial leadership.

Negotiations broke down in May over how to enforce any deal. Beijing says Mr. Trump’s tariff hikes must be lifted as soon as an agreement takes effect. Washington wants to keep some in place to ensure compliance.

Mr. Trump and Chinese President Xi Jinping agreed in June to resume talks but the last round in Shanghai in July produced no progress.

Chinese negotiators are due to fly to Washington in early October to meet with Mr. Mnuchin and U.S. Trade Representative Robert Lighthizer, according to the treasury secretary. He said mid-level U.S. and Chinese officials were due to meet next week or the following week to prepare.

By delaying his tariff hike, Mr. Trump allowed for the possibility the talks might make enough progress to avert the increase.