China uses soybean paper to acquire a commercial benefit against America

For the first time in the 1990s, China refused to buy any quantities of our soybeans at the beginning of the export season, in a move that again reflected the use of Beijing to work as a print card in its trade dispute with Washington. As the largest buyer of soybeans worldwide, China has a widespread impact on the movement of international markets. This is now due to the use of a well -known strategy that reduces its purchases from the United States, which is the same approach he used during the First Trade War during the era of US President Donald Trump, while the two parties try to maintain a fragile ceasefire. The US Department of Agriculture data showed that China only registered any contracts on September 11, that is, almost two weeks after the start of the new marketing season, in a precedent that has not taken place since the start of the records in 1999. Last year, the United States acquired five China’s soybean imports, with a value of over $ 12 billion, representing more than half of the total value of US financing from this commodity. With her abundant shares, Beijing shows that she has patience and the ability to wait, and that she is ready to use goods as a negotiating card in the broader commercial talks. President Xi Jinping is preparing for a conversation with Trump on Friday, at a time when the dispute between the two countries was imposed on the restrictions on the semiconductor and rare metals. China also increased its pressure by announcing an initial investigation that found that “Nvidia” violated the laws against monopoly. Chinese strategic tactics said Evin Bay, an agricultural analyst at the Trivium China in Beijing: “China’s approach to soybeans is similar to the approach with rare minerals, because it reflects years of exact planning since the outbreak of the previous trade war.” She added that “buyers are not only influenced by the high rates imposed on US beans, but also a great deal of uncertainty about the future of these drawings in the short term, as well as clear political messages confirming that Beijing does not want to complete purchases without official approval.” This strategy seems to be fruitful. American farmers, who have abundant crops, are facing prices near their lowest years. Soybeans, which are a basic election base for Trump, warned against ‘commercial and financial abyss’ and called on the US administration to conclude an agreement with China to cancel customs duties, at a time when the shipping of China is subject to fees of more than 20%. China assures its shares on the other side of the Pacific, a quieter atmosphere. Soybeans, pigs and feed producers in China, affected by the First Trade War, have managed to secure their sufficient supplies for months of Brazil. Some of them have doubled their shares, while large government reserves provide extra support. Read more: China is on his way to the Brazilian soybeans with the escalation of the trade war. Soybeans in China are used as the basis for the production of soybeans that enter into the production of pork feed, as well as soybean oil used in cuisine. According to well -known people who asked not to reveal their identity due to the discussion of commercial matters, Chinese importers bought enough shipping to cover their needs until the end of this year, and this makes the urgent requests for US supplies until the first quarter of 2026 at least. US soybeans usually ignored Chinese buyers on US soybeans in the period between October and February, before the arrival of South America crops. The importers tend to discuss weeks ago to ensure that cheaper prices are obtained, and it was customary to buy millions of tonnes by this time of year. However, the ongoing trading tension has led them to avoid American beans for fear of revenge fees and geopolitical risks. The Chinese strategy is not only limited to soybeans, but has also expanded to reducing the import of wheat, wheat and American church in the new season, despite Beijing, these pills continued to import these pills from Brazil, Canada and Australia. Despite the general decline in grain imports with the slowdown in the economy, this step falls within the framework of a more comprehensive approach aimed at reducing the dependence on the United States and diversifying supplies. Trump is focusing on the agricultural file in light of the pressure on American farmers, and the agricultural file is expected to be the Trump agenda in its continued commercial talks with China Top, according to Andy Road, the former US diplomat and CEO of Sinology LLC, which provides consultations to investors and businesses on US -Chinese tensions. Trump farmers have already warned against an imminent crisis, while President China has called on the demands of soybeans from the United States four times. Rochd explained that Trump could possibly reach progress in a more comprehensive trade agreement, but reaching a fundamental agreement over the phone seems unlikely, especially with the two parties ready to hold a direct meeting later this year. Read more: To reduce the deficit. Trump demands that China buy soybeans four times and China has taken some symbolic steps to reduce tension before the talks. It resumed its purchases from US oil after a six -month stop. It also suspended an investigation to combat monopoly on the dominance of the “Android” system of “Google”, according to the newspaper “Financial Times” on Thursday about famous people. Rochd explained that agriculture, especially soybeans, will remain the focus of any agreement. Instead of the ‘impossible’ goals set out in the previous first phase agreement, the two parties are expected to achieve more realistic obligations. However, China plays with fire, but China’s strategy to avoid US soybeans is not without risks. Brazilian bean prices have risen significantly since the beginning of the year, and any crop disorder in South America can reduce the stock. And if production decreases there, Beijing may rely on his strategic reserves at an earlier time than planned. But in light of the abundance of supplies now, the possibility of an imminent trade agreement in China may raise. Since Beijing has suddenly bought US soybeans, it could lead to an excess of offer, which gets the local soy prices under pressure, which can confuse the storage and hedging strategies that have adopted in recent months. In the north of China, one of the purchasing managers said he only believed in his needs until next month because of the abundance of stock. While another driver warned in a large grinding business that the flow of American beans could earn unexpected soy. And both asked not to be identified because he did not have a permit to speak in public. The dark aspect of customs duties would not have been for customs duties, the United States would have been one of the most effective and lowest suppliers of soybeans, but China pays a higher price to avoid these supplies, according to the Bay of “Trevium”. The longer complies with this policy, the higher the cost of it and the greater the suffering of US supplies. Despite China imposing a retaliation cost on US soybeans, it has received some exceptions and allowed companies to bring limited amounts of agricultural products. “If an agreement is reached, there will certainly be a certain degree of demand for American soybeans by Chinese buyers. The issue lies in the trade war itself, not quite the absence of demand,” Bay said.

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