China and Russia intend to ‘deepen trade in soybeans’ after a tariff war hit the crops export from the U.S..
China’s Commerce Minister Zhong Shan negotiated with Russian minister for economic development Maxim Oreshkin about the raise of trade. Soybean and other agri-cultural products are the principle theme for China in the hope of fulfill space on the market by products left by the U.S. because of a war.
As China wants to expand its supply of soybean far from the U.S., Commerce Minister Zhong Shan supported the idea to “deepen trade in soybeans and other agricultural products” at the meeting with Russia.
Zhong negotiated with the Russian minister for economic development Maxim Oreshkin on Tuesday on means to raise the bilateral trade.
During the investment forum in Moscow last year Vladimir Putin denounced that Russia would enlarge the export of soybeans into China to fill the space with product left by the U.S.
China interrupted the U.S. export after 25% tariffs imposed on soy import in respond to the American costs in Chinese goods.
Despite this fact, Russia soy export into China has reduces from September to May as to Russian custom data. Russia sold 690000 tonnes to China in contrast to a last-year-season of 580000 tonnes.
He Yuxin, a soybean analyst at Sublime China Information, a Shandong-based provider of data to the Chinese commodity market, pointed out that “even in the long run, it is almost impossible for Russian soybeans to replace American soybeans.”
“Russian soybeans are enjoying a privilege at the moment, as China has imposed tariffs on US soybeans. Once the tariffs are lifted in the future, however, China will choose American soybeans, because there will not be any big difference in price. Currently, Russia’s soybean output is even less than China’s.”
China, meanwhile, try to improve a domestic soy output.
Natalia Veselnitskaya – official website