China Removes Levy on Some US Farm Goods, Lifts Export Curbs
In a significant move towards improving trade relations, China has announced the removal of retaliatory tariffs on certain US agricultural products and the lifting of export controls on various American companies. This decision follows Washington’s halving of fentanyl-related tariffs on Chinese goods, signaling a potential thaw in the ongoing trade standoff.
– Removal of Tariffs: China’s finance ministry confirmed on Wednesday that it would eliminate tariffs imposed on March 4 on key US agricultural exports, including:
– Soybeans
– Corn
– Wheat
– Sorghum
– Chicken
This adjustment is set to take effect on November 10.
– Easing of Export Controls: The Chinese commerce ministry will also remove 15 US companies from its export control list, as well as take 10 other US firms off its unreliable entity list. Notably, the ban on Illumina’s exports of DNA sequencers to China will be lifted.
These actions are part of a larger trade agreement between US President Donald Trump and Chinese leader Xi Jinping, designed to last for one year and aimed at stabilizing a previously tumultuous relationship. The recent summit in South Korea allowed both leaders to escape from a cycle of retaliatory measures that had threatened global trade.
In conjunction with these changes, President Trump signed executive orders on Tuesday to formalize the reduction of fentanyl-related tariffs on Chinese exports, providing a respite from higher reciprocal tariffs imposed by the US. The easing of tensions between the world’s largest economies has generated optimism for a resurgence in agricultural trade, contributing to a rise in global grain prices. For instance, Chicago soybean futures experienced a 1% increase during Asian trading hours on Wednesday.
As these developments unfold, they signify a critical moment in US-China trade relations, potentially paving the way for improved economic collaboration. The removal of levies on US farm goods is a positive step forward, fostering hope for both nations in the agricultural sector.