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Chinese Companies Inquiring About US Ag Goods, China Says

Chinese companies have begun asking about prices of U.S. agricultural goods in response to the U.S.’s two-week postponement of tariffs on Chinese goods, a China Ministry of Commerce spokesperson said.

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“We welcome the goodwill action released by the U.S.,” spokesman Gao Feng said during a Sept. 12 press conference, according to an unofficial translation of a transcript of the event. “As far as I know, Chinese companies have begun to make inquiries on the procurement of U.S. agricultural products.” He said the products include U.S. pork and soybeans.

Gao said the move is part of China’s plan to “create favorable conditions” for the two sides’ upcoming Washington meeting in early October. The move follows a Sept. 11 announcement on Twitter by President Donald Trump that the U.S. would postpone tariffs on $250 billion worth of Chinese goods, from Oct. 1 to Oct. 15.

On Sept. 12, Trump tweeted: “It is expected that China will be buying large amounts of our agricultural products!”

During the press conference, Gao also said companies must prove three conditions to successfully receive the tariff exemptions China announced Sept. 11 (see 1909110051). Companies must prove that “it is difficult to seek alternative sources of goods,” the Chinese tariffs caused “serious economic damage” and that the increased tariffs caused “major negative structural impacts on the relevant industries or has serious social consequences,” Gao said.