Dec 05, 2018 (China Knowledge) - Chinese officials have commenced preparations to resume imports of U.S. 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.
However, it still remains unclear when the purchases will take place and whether China will remove the retaliatory tariffs on these products or not; Beijing may instead choose to reimburse buyers for the tariffs paid as they have previously done so.
Chinese purchases for the aforementioned products have nearly completely halted after Beijing imposed tariffs on them in response to the U.S. tariffs on Chinese goods. The two countries have now agreed to a 90-day truce to work out a broader trade deal.
Imports of American soybeans fell by 95% in October YoY and LNG imports were virtually non-existent after the tariffs were imposed. Should China remove the tariffs now, U.S. soybean would likely still be uncompetitive in the global market as harvest season approaches for the crop in South America.
China’s top suppliers for LNG are currently Australia, Turkmenistan and Qatar.
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