As part of the first phase of a trade deal announced in January, and a few weeks before the coronavirus pandemic curbed global trade, China pledged to buy US $ 36.5 billion worth of agricultural products, from $ 24 billion in 2017 to start of a trade war. Instead, China has only bought $ 4.65 billion in the first four months of the year, according to the USDA. This is only 13% of the goal in a trade transaction and almost 40% lower than for the same period in 2017.,
And so, shortly after it was confirmed that the “stubborn” trade deal was nothing more than one big farce overnight – perhaps in an attempt to spur the purchase of shares in the alternative market – Bloomberg said that China plans to accelerate the purchase of US agricultural commodities to match with the first bargain after negotiations in Hawaii this week.
One of the world’s best soybean importers intends to increase purchases of everything from soybeans to corn and ethanol, after purchases lagged due to coronavirus malfunctions.
An individual said that the Chinese government has asked government buyers of agricultural products to make every effort to implement the first-phase agreement.
Naturally, Spoos – which until now had been trading mostly unchanged, the Stoxx 50, soybeans and RMB – were all in the news.
Oddly enough, except for the “two acquaintances,” no one confirmed the report, and the Chinese Ministry of Commerce was silent. Zhao Lijian, a spokesman for the Chinese Foreign Ministry, said that “I don’t have any additional information to provide right now” when asked about procurement plans for a briefing in Beijing.
The report came after SecState’s commentary on Thursday by Michael Pompeo, who stated that a senior Chinese foreign official pledged to fulfill all of his country’s obligations under a trade deal.
“During my meeting with CCP Politburo member Yang Jiechi, he again decided to fulfill and fulfill all the obligations of the Phase 1 trade agreement between our two countries,” Pompeo wrote on Thursday. According to Bloomberg, Pompeo did not provide any details other than a tweet, but this was the first important news after a secret meeting with Ian at the Hickam Air Force base in Hawaii on Wednesday. It is still unclear how the meeting went or who asked it. Both sides said the other initiated this.
Bottom line: with the elections that will be held in just 5 months, expect the Trump administrator to drop everything and everything in the market to raise him, which, in his opinion, increases his chances of re-election. On the contrary, it also means that anyone who does not want to see Trump’s re-election will be especially interested in the market crash.