China has agreed to purchase $17 bln worth of agricultural products from the US annually until 2028

Following US President Donald Trump’s two-day summit in China, the White House announced that China had committed to purchasing at least $17 billion worth of American agricultural goods annually through 2028. This was stated in a White House statement.

Furthermore, China has restored access to its market for American meat: expired licenses for more than 400 beef suppliers have been extended, and work has begun with US regulators to resume imports of American poultry.

The Chinese Ministry of Commerce noted that the two sides will be able to find solutions to problems through dialogue and cooperation. In its statement, the ministry noted that the agreements were discussed during trade talks in South Korea ahead of Chinese President Xi Jinping’s meeting with Trump, Bloomberg reports.

However, little information has been released on the results of the tariff negotiations, the agency notes. China has announced plans to mutually reduce duties on certain goods but has not disclosed details; working groups from both countries are continuing negotiations. Trump himself told reporters that tariffs were not discussed during his meetings with Xi Jinping.

The new purchase volume will be in addition to existing soybean purchase commitments made last fall. China had previously begun to favor cheaper Brazilian soybeans after fulfilling the initial US purchase volume agreed upon as part of last year’s trade truce.

Bloomberg notes that Trump’s previous efforts to increase exports to China have fallen short. Specifically, China has failed to fulfill its commitment under the 2020 agreement to purchase an additional $200 billion in goods (including agricultural products, energy, and industrial goods) over a two-year period.

Tags: China, USA