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Phase 1 Agreement – China’s historic US agricultural product purchases

by Bunkerist
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The U.S. and China say on January 15th that the U.S. officials will sign the Phase 1 trade agreement, which they say will promise to purchase another $ 32 billion of U.S. farm goods for the next two years.

China has not confirmed Trump’s annual sales target of $ 40 billion to $ 50 billion, suggesting that its purchases almost doubled before the trade war started in 2018. Although Beijing’s unexpected political movements towards the USA have decreased, China’s recent purchases of Brazilian soybeans have also decreased. After this positive weather, the US hopes to reach high import figures.

Soybean made up more than half of China’s agricultural purchases from the US in 2017, with about $ 12.2 billion.

The agricultural products that China has purchased from the USA in the past are:

Soybean Beans China bought about 60% of US soybean exports, the main export product of the US, before the trade war. According to government data, China has purchased 11.1 million tons of soybeans, worth $ 4 billion since September 1.

SORGUM China started to buy the US sorghum, which it uses for the production of baiju liquor and animal feed in 2008. Their purchases rose to $ 2,115 billion in 2015, but in 2016 they fell more than half to $ 1,030 billion. He bought $ 139,094 million sorghum between January-November 2019.

PIG China raised pork imports to record levels after destroying a herd of infectious and deadly swine disease. US pork exports to China and Hong Kong reached $ 1.18 billion, up 49% from January-November 2019. 2018 exports were over $ 852.5 million and exceeded the previous year’s record, with exports of $ 1.08 billion in 2017.

Beef China China officially continued importing US beef in 2017 after a 14-year ban, but some restrictions have been retained. Beef exports from the USA to China and Hong Kong in January-November 2019 were $ 746.4 million, down 19% compared to the previous year. China and Hong Kong imported a record $ 1 billion US beef in 2018.

EGYPT China was in the top five buyers of US corn between 2011 and 2013, but the situation changed as domestic production increased. In 2017, it bought $ 142,036 million corn and remained at $ 52,857 million between January-November 2019.

RICE China, the world’s largest rice producer, typically receives a small amount of U.S. products. Purchases reached $ 5,311 million in 2010. It was $ 759,000 from January-November 2019 in 2017. Rice exports from the USA to China between January-November 2019 are worth only $ 165,000.

POULTRY ANIMAL In November, China lifted a nearly five-year ban on US poultry in January 2015 due to the outbreak of bird flu. The market bought $ 500 million American poultry products in 2013.

WHEAT China is the number 2 wheat producer in the world after the European Union and has approximately half of all global wheat stocks. However, in recent years, it has been the No. 3 or 4 buyer of high protein US hard red spring wheat, which is used to mix and improve the quality of less graded wheat.

AGRICULTURAL EQUIPMENT Some analysts thought the equipment could be counted as an agricultural component in a final trade agreement. According to the US Census Bureau data, agricultural machinery exports were just over $ 200 million by October last year. Beijing’s largest purchase in the past two decades was nearly $ 430 million in 2015.

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