China Pledges To Increase Soy Imports From The United States After Successful Talks

China Soy Import
Soy beans in a burlap bag (Photo: Public Domain)

After just two days of negotiations, China's Vice Premier Liu He has revealed that the country will be increasing its import of soybeans from the United States. China is planning to import at least 5 million tons of soy from country per day. Liu did not specify the timeframe of how long they will keep these numbers up and from which companies they will be buying from. There are reports that are speculating that the premier's interpreter might have made a mistake.

All in the all, the first days of the trade negotiations have been very successful. This is at least according to President Donald Trump and Trade Representative Robert Lightnizer. Trump also indicated that the talks have been very productive and that they were close to agreeing on a deal that would hopefully end the trade war.

In response to China's pledge to import more soybeans from the United States, Trump announced in an interview that the pledge was a clear "sign of good faith" from China given that they made the commitment even before signing a deal with the country. China had started buying soybeans from the United in the past few years but at a very sporadic rate. The last time it bought a significant amount was in December when Trump and President Xi Jinping met to discuss both their country's trade relationship. That meeting wasn't as successful as it ended with the United States implementing stiff tariff rates for all agricultural exports to China.

Aside from agricultural exports, both countries still need to iron out a lot of controversial disagreements between them. The United States still wants China to put a stop to the appropriation of US intellectual property rights and to remove specific barriers on commodities exports to the country. This includes the export of pork, beef, and poultry. The Chinese will likely not lift all of the tariff and non-tariff barriers, but both parties may be able to reach a deal that will be agreeable to both parties.

Lightnizer is expected to visit China in the coming months to cement any new agreements made during the negotiations. Although some deals may be delayed due to the upcoming Chinese new year's festivities.

According to reports, it may be possible for Trump to extend the conclusion of the needs to accommodate China. However, Trump has expressed publicly that an extension may not be needed given how the negotiations have progressed so far. 

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