State media reported on Sunday that China is looking to inquire into prices of other U.S. agricultural products aside from soybeans. Some of the farm goods that Chinese companies will look into are cotton, pork, and other dairy products.
The news came after state news outlets confirmed that Chinese buyers have successfully ordered tons of American soybeans. As part of China's efforts in keeping its pledge to the U.S., other farm goods, including wheat, sorghum, corn, and more will be considered.
Officials from China's National Development and Reform Commission and the Ministry of Commerce reportedly revealed that Chinese buyers will continue to purchase American farm products given that prices are reasonable and the goods are good in quality.
CEO of the National Cotton Council, Gary Adams, noted that the two countries should maintain a strategic partnership. "In addition to considering the sustainable supply chain, it is crucial to maintain a long-term partnership with China," Adams pointed out.
China and the U.S. are set to hold trade talks in Shanghai this week. The negotiations were pursued after Chinese President Xi Jinping agreed to make increased purchases of farm goods. U.S. President Donald Trump, for his part in the meeting at the G20 Summit, pledged to hold off additional tariffs.
Also this month, multiple outlets revealed that China broke its records of U.S. sorghum purchases since April. The U.S. Department of Agriculture confirmed that the country imported 51,072 metric tons of sorghum grain on the second week of July despite the high tariffs.
Furthermore, data from the agriculture department revealed that Chinese sorghum buyers have been making reasonable purchases of the product since June. China is considered the world's largest importer of the said grain.
Nebraskan sorghum farmer and former Chairman of the U.S. National Sorghum Producers, Don Bloss, said farmers and buyers in the China-U.S. sorghum circle "are still friends." He added that Chinese buyers see fair prices amid the tax duties.
During the weekend, the United States unveiled its GDP figures for the second quarter of 2019. While the economy expanded by 2.1 percent and exceeded expectations, multiple experts stressed that the numbers for this quarter are still quite lower than the same period in 2015.
Economists noted that there are already signs the downtrend will keep treading the same path in the coming months. Both consumption and investments did not post remarkable figures over the past year. These two factors are key economic drivers in the U.S.
It remains to be seen if the economy will improve in Q3. Some analysts believe Trump can propel the U.S. economy if he first starts to end his trade war with China.
