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After China and the US reached an agreement on soybeans, Beijing has signalled its intent to seek favourable terms, with the scale of future imports dependent on the competitiveness of American crops, a commerce official said. “With the adjusted tariffs, China will encourage companies to import agricultural products from the US in line with market principles,” said Chen Chao, director general of the Department of American and Oceanian Affairs at the Ministry of Commerce, in a speech at the China International Import Expo (CIIE) in Shanghai on Thursday. “As long as the price is competitive, the quality is good and supply is sufficient, I believe Chinese companies will reach many deals or sign intentions with US exporters and farmers,” he added, noting that China had a “massive” need for soybeans. Soybeans and other agricultural products have been a point of contention in the US-China trade war, while both countries exchanged trade restrictions and threats last month on issues ranging from tariffs to rare earths. But a meeting between the two presidents on October 30 concluded with a series of agreements, including a pledge from Beijing to resume imports of the crop. A White House fact sheet released last week stated that China would buy at least 12 million tonnes of US soybeans in the final two months of this year, and at least 25 million tonnes annually for the next three years. On Wednesday, China also announced it would remove additional tariffs of up to 15 per cent on some US agricultural products, effective on Monday. For US soybeans, Beijing removed 10 per cent of the additional tariffs imposed earlier. Speaking at the CIIE on Thursday, Scott Gaffner, secretary and director of the US Soybean Export Council, said American soybean farmers remained committed to the Chinese market despite concerns that a declining population could weigh on demand. “We know that the median income is growing, bringing more people into that arena where they want more protein-rich diets. That can help both human consumption and feed consumption,” he said. “We’re gonna go through the thick and thin just like we have in the last few years because we know that the Chinese market is strong and we look forward to providing our great high-quality US products to this market.” Beyond the optimism of US farmers, Beijing has reaffirmed its commitment to further opening up in its coming five-year plan. Vice-minister of Commerce Ling Ji chaired a round-table with foreign businesses at the CIIE, featuring representatives from over 30 multinational companies including Intel, Air Products, Nissan Motor and Lego, according to a statement by the ministry. He said foreign enterprises would share in China’s development opportunities over the next five years as the country continued to improve its business environment – including by further opening up the services sector, expediting foreign-invested projects and ensuring equal access to government procurement. “In an era of rising unilateralism and protectionism, a fair, impartial and rules-based market environment is a global rarity,” Ling said, adding that China remains committed to such principles. Additional reporting by Carol Yang
