Published: Fri, May 18, 2018
Finance | By Claude Patterson

China proposes buying $200 billion of American goods, US officials say

China proposes buying $200 billion of American goods, US officials say

A decline in China's soymeal prices after China on Friday dropped its anti-dumping probe into imports of USA sorghum is expected to stoke further losses at Chinese soy processors, which have been in the red since mid-May due to weak animal feed demand in the world's biggest pork market.

President Donald Trump's administration has proposed tariffs on as much as $150 billion in Chinese language merchandise to punish Beijing for requiring USA firms to show over expertise in change for entry to China's market.

Indeed, the ministry said it had concluded that the anti-dumping and anti-subsidy measures it had imposed on the sorghum imports in April would affect the cost of living for Chinese consumers and were not in the public interest.

Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney said China had shown the American president that unilateral trade action could hurt America, too.

The probe had sparked concerns among American farmers that they might lose their largest export market for the crop.

President Donald J. Trump's administration has proposed tariffs on up to $150 billion in Chinese products to punish Beijing for requiring USA companies to turn over technology in exchange for access to China's market. Authorities imposed preliminary anti-dumping tariffs of 178.6 p.c final month on the crop, which is used primarily for animal feed and liquor.

China's Commerce Ministry said on Thursday that the government in Beijing hoped to resolve the trade frictions during the latest round, ending Friday. "The next U.S. sorghum crop will be harvested in August", he told the news agency Reuters.

The United States accounts for more than 90 percent of total sorghum shipments to China, with imports from the USA worth just over $1 billion previous year.

It said it had received many reports that the investigation would result in higher costs for the livestock industry, adding that many domestic pig farmers were facing hardship because of declining pork prices. "We are now saved", said a private sorghum trader who had over 600 tonnes of USA sorghum stranded at a Chinese port.

China denied on Friday that it had offered a package to slash the US trade deficit by up to $200 billion.

The negotiations center on USA complaints about Chinese investment restrictions, theft of American intellectual property and the overproduction of metals. Trump instructed reporters that he had doubts concerning the potential for an settlement.

A high-level Chinese delegation led by Vice Premier Liu He is now in Washington for trade negotiations with the US. "We just can't do that anymore", he said.

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