Beijing | Reuters – Senior Chinese trade negotiator Li Chenggang met political and business leaders from the U.S. Midwest, the commerce ministry said on Tuesday, with analysts speculating the region’s food exports will be key to any U.S.-China trade deal.
U.S.-China commercial ties had featured in Monday’s talks, the ministry said in a statement, without giving details.
China, the world’s biggest buyer of soybeans, has yet to buy any U.S. soybean cargoes from its autumn harvest, traders have said, the bulk of which come from the Midwest.
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Regardless of the United States government shutdown ending soon or not, the Department of Agriculture is set to issue its supply and demand report on Nov. 14. The USDA cancelled its October edition of World Agriculture Supply and Demand Estimates due to the shutdown and pushed back their November report a few days.
Trade analysts anticipate U.S. President Donald Trump will want China to commit to buying more American agricultural goods and Boeing jet planes, among other items, as part of any deal to end the two largest economies’ current tariff war.
But Chicago soybean futures, already near 5-year lows, fell further on Friday, after neither side reported any update on agriculture, following Trump’s telephone call with Chinese President Xi Jinping.
On Tuesday, U.S. Ambassador to China David Purdue told reporters he thought negotiations over China buying more Boeing aircraft had entered their last days or weeks.
— Reporting by Joe Cash
