China Orders Suspension of Purchases of US Soybeans and Pork

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Amid escalating US-China tensions triggered by China's push to legislate the Hong Kong National Security Law (Hong Kong Security Law), reports have emerged that China has ordered a halt to purchases of US soybeans and pork.

Bloomberg News reported on the 1st (local time), citing sources, that the Chinese government instructed state-owned grain companies such as Zhongliang Group and the China Grain Reserves Corporation to stop buying certain US agricultural products, including soybeans, as well as pork.

US soybeans and pork were expected to be actively purchased by China under the US-China Phase One trade agreement signed earlier this year. However, if it is confirmed that the Chinese government deliberately ordered a suspension of imports of US soybeans and pork, there are concerns that the already precarious Phase One trade deal could ultimately collapse.

Bloomberg noted that China's suspension of purchases of US soybeans and pork could be seen as a sign that the hard-won Phase One trade agreement is in jeopardy, and warned that if the US government responds strongly, US-China relations could deteriorate further.

In particular, tensions between the US and China have already deepened as China pushes forward with the Hong Kong Security Law legislation, and the US opposes it while considering various sanctions measures.

To fulfill the Phase One trade agreement with the US, China must make additional purchases worth $200 billion over the next two years in sectors including agricultural products, industrial goods, services, and energy. Bloomberg reported that under this agreement, China is supposed to purchase $36.5 billion worth of US agricultural products this year alone, but due to the impact of COVID-19, China's purchases of US agricultural products in the first quarter amounted to only $3.4 billion.

This content was produced with the assistance of AI translation services.