Beijing Tells State-Run Grain Companies to Halt U.S. Soybean Purchases
State-run grain companies in China have been directed by Beijing to stop buying U.S. soybeans and pork, amid rising tensions between the two countries, and possible sanctions on Hong Kong.
After China imposed a national security law on Hong Kong, the U.S. said it would revoke Hong Kong’s preferential treatment as a separate customs and travel territory from mainland China. The U.S. administration also contended that it would begin to explore sanctions against China and Hong Kong officials who were responsible for Hong Kong’s loss of autonomy. As part of the trade war de-escalation agreement, China agreed to the purchase of U.S. agricultural products valued at $36.5 billion this year. However, only purchases totaling $3.35 billion have been made to-date.
Both COFCO and Sinograin have been told to halt U.S. shipments, however private companies are not under the same orders. COFCO and Sinograin have instead bought their needed soy from Brazil.