Published: Fri, December 07, 2018
Economy | By

China is preparing to buy U.S. liquefied gas and soybeans again

China is preparing to buy U.S. liquefied gas and soybeans again

Chinese officials have commenced preparations to resume imports of US soybeans and liquefied natural gas (LNG) following the meeting between the two Presidents over the weekend where China agreed to enhance its imports from the U.S.

Failure would raise the specter of a major escalation in the trade battle, with fresh US tariff action and Chinese retaliation possibly as early as March.

Chinese officials hailed on Wednesday a "very successful" trade meeting with the USA, just days after President Trump claimed there had been a major breakthrough in negotiations that ended in a new trade deal. "China does not want Tariffs!"

The remarks, by the Chinese Commerce Ministry, follow a period of relative quiet from Beijing after Trump and Chinese leader Xi Jinping reached a temporary truce in their trade war at a meeting over dinner in Argentina on Saturday.

"If it is, we will get it done", Mr Trump said in a Twitter post.

According to agreement, China agreed to buy a "very substantial" amount of agricultural products, industrial, energy and some others too from the United States in order to reduce the trade gap in-between countries, and also China agree to purchase farm products "immediately" from U.S., the White House said.

The ministry's statement came after the United States president, Donald Trump, called himself "a Tariff Man" on Twitter and warned more levies could be imposed on China.

"We are right now taking in $billions in Tariffs".


A vow by China to reach a trade settlement with the United States has helped settle financial markets after steep falls in U.S. stocks.

The U.S. had a $335.4 billion trade deficit with China in 2017.

There are several significant take-aways from this development, including the argument that Trump's hard line, even at times belligerent stance with Beijing, has caused them to blink first, particularly since economic growth in China has already started to feel the brunt of US tariffs, while USA economic growth, though not as robust as a few months ago, is still strong.

America has probably already missed its best chance to sell soybeans to China, according to Cargill, one of the world's biggest agriculture commodity traders.

The market is closed Wednesday as the United States celebrates a National Day of Mourning for the late President George H.W. Bush, whose funeral will held at the Washington National Cathedral.

A Chinese official told Reuters officials were "waiting for the leaders to return" before publicising details.

At the sidelines of last weekend's G20 summit, Mr Trump and Mr Jinping agreed not to increase tariffs for 90 days to allow negotiations to take place. China's government has been slow to formulate its response to the summit as senior officials were still out of the country with Xi, Bloomberg News reported.

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