China Approves Tariff-Free U.S. Soybean Purchases as Goodwill

The Chinese government has given the go-ahead for five companies to buy up to 3 million tons of U.S. soybeans free of retaliatory import tariffs as trade negotiations between the two nations continue, according to people familiar with the situation.

The retaliatory tariff-free quota for 2 million to 3 million tons will be part of a goodwill gesture toward the U.S., and there could be a second round of exemptions depending on how the trade talks progress, two of the people said, declining to be identified as the information is private.

Among the companies is state-owned Jiusan Group as well as privately-run Shandong Bohi Industry Co. and China Sea (Zhonghai) Grain and Oil Industry Co., the people said. Yihai Kerry Group, a Chinese subsidiary of Singapore-based Wilmar International Ltd., and Hopefull Grain & Oil Group are also among the firms, said the people.

https://www.hellenicshippingnews.com/china-approves-tariff-free-u-s-soybean-purchases-as-goodwill/

The decision on the soybean purchases follows a meeting between the Chinese government and soybean buyers last Friday in Beijing to discuss the plan. After China adopted 25% tariffs on U.S. soybeans in July 2018, imports by the world’s biggest consumer had plummeted to almost zero toward the end of last year.
Source: Bloomberg