China Imported 3.4 Million Tons of U.S. Soybeans Last Month... 196.4% Increase

Possibility of Additional Imports of Wheat, Corn, etc. to Improve Relations with Biden Administration
Price Competitiveness Lower Compared to Brazilian Soybeans, Discussion on Tariffs Needed

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China's imports of US soybeans increased by 200% last month, according to the Chinese state-run Global Times on the 27th.

The Global Times cited China's customs data for October, reporting that 3.4 million tons of US soybeans were imported last month. This represents a 196.4% increase compared to the same month last year. In September, US soybean imports amounted to only 1.17 million tons.

The total soybean imports of China in October were 8.68 million tons, of which 3.4 million tons were US-origin, the Global Times added.

Regarding the surge in US soybean imports, the Global Times explained that the increase was due to the China-US Phase One trade agreement.

[Image source=Reuters Yonhap News]

Gao Lingyun, a researcher at the Chinese Academy of Social Sciences, said, "China is importing US agricultural products according to the China-US Phase One trade agreement," adding, "Although the original target import volume has not been met due to the novel coronavirus disease (COVID-19), China is making efforts to uphold the agreement."

Under the Phase One trade agreement, China is required to import a total of $32 billion worth of US agricultural products by 2021.

Regarding US agricultural product imports, there are also talks that China may purchase additional US agricultural products such as soybeans, wheat, and corn to maintain relations with the upcoming Joe Biden US administration.

However, China argues that US soybeans are less price-competitive compared to Brazilian soybeans, and thus calls for improvements in trade-related systems such as tariffs.

Last month, China imported 4.233 million tons of Brazilian soybeans, an 11.6% increase compared to the same month last year.

The Global Times emphasized that Brazilian soybeans have benefited from the China-US trade dispute. Citing experts, the Global Times reported that the price competitiveness of US soybeans is lower than that of Brazilian soybeans, making additional purchases by the private sector difficult.

The media outlet stated, "Before the trade dispute, US soybean exports to China reached 30 million tons annually, but due to the dispute, last year's US soybean imports amounted to only 6.6 million tons," adding, "Discussions on tariffs and other trade-related issues are necessary to restore the competitiveness of US soybeans."

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