Chinese importers buy US soy cargoes - traders

Chinese importers buy US soy cargoes - traders

Chinese importers buy US soy cargoes - traders

This move shows a willingness to negotiate with the USA and could spell a cessation to the expensive and problematic trade war between the world's two largest economies.

China made its first major USA soybean purchases in more than six months on Wednesday, two US traders said, and its first since Trump and his Chinese counterpart Xi Jinping struck a trade war truce in early December.

The White House is delaying a second round of payments from a $12 billion aid package for farmers stung by a trade dispute between China and the United States, amid optimism China will soon resume buying USA soybeans, three sources familiar with the matter told Reuters.

Trump is in the midst of delicate negotiations with China after agreeing to a 90-day tariff truce with Xi at a December 1 dinner in Buenos Aires.

The export council "is encouraged by the news that buyers from China have made purchases of USA soybeans", the American group said in an email.

The US has hit a total of US$250 billion worth of Chinese goods with tariffs since July, and China has retaliated by imposing duties on US$110 billion of US goods.

Trump approved tariff hikes of 25 percent on $50 billion of Chinese goods and 10 percent on another $200 billion of imports in response to complaints Beijing steals or pressures companies to hand over technology.

The lack of sales has left USA farmers in a rough spot.

BMW, which exports sport utility vehicles from the USA to China, rose as much as 3.3pc to €72.40 in Frankfurt.

U.S. officials later said they wanted to see China move to reduce the vehicle tariffs "immediately" as a sign that negotiations would proceed in good faith.

The purchases will also ease Chinese concerns about soybean supply. Another trader with direct knowledge of the deals and one who sells beans to exporters involved said around 30 cargoes had traded by Wednesday afternoon.

President Donald Trump said earlier this month China would cut the tariffs.

"This is a start", said Valley City, North Dakota farmer Monte Peterson. Soybeans have become the poster child of the trade dispute, with the Asian nation shunning imports from farms in rural communities that voted for Trump in 2016.

United States farmers stored soybeans after the fall harvest, instead of selling them to grain traders and processors, because of low prices and lack of alternative buyers.

Ross did not say when the Chinese auto tariffs will come down or whether Washington had made any offer in exchange, nor when soybean exports might resume. This year, it dethroned Apple as the world's second largest smartphone maker. Across the Midwest, the 2018 harvest had been piling up, unsold, in silos, bins and bags.

"I think they're looking to do it immediately, very quickly", he said.

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