China restores soybean import licenses for US firms

China has announced the restoration of soybean import licenses for three U.S. companies and the lifting of its ban on U.S. log imports starting November 10, according to the country’s customs authority on Friday. The move marks another sign of easing trade tensions between the world’s two largest economies.

The import license suspensions had been imposed in March amid escalating trade frictions between Beijing and Washington. They affected the U.S. farmer-owned cooperative CHS, global grain trader Louis Dreyfus Company Grains Merchandising, and export terminal operator EGT.

The halt on U.S. log imports was a retaliatory measure following former U.S. President Donald Trump’s March 1 order to investigate lumber imports. Investor sentiment improved after Trump met with Chinese leader Xi Jinping in South Korea, easing fears that the two nations might abandon efforts to resolve their trade disputes.

Following the meeting, Beijing lifted some of the tariffs it had imposed in March on American agricultural goods and resumed limited purchases of U.S. farm products, including two cargoes of wheat. Additionally, state grain trader COFCO booked three U.S. soybean shipments before the leaders’ meeting.

However, traders remain cautious, as a 10% tariff on all U.S. imports, including agricultural products, remains in place. The continued tariff burden limits expectations for a full recovery in bilateral trade flows.

Tags: China, soybean, USA