Beijing’s Ministry of Commerce announced Wednesday that the United States and China have reached an understanding to reduce agricultural trade tariffs as part of a comprehensive trade agreement, though the statement left many implementation questions unresolved.
Following last week’s meeting between President Donald Trump and President Xi Jinping in Beijing, the White House reported that China committed to purchasing $17 billion in American agricultural products annually, in addition to an existing multi-billion-dollar soybean agreement.
This purchasing commitment would restore Chinese imports of American agricultural goods to near-record levels, but meeting this target would likely necessitate Beijing removing tariffs implemented during the trade conflict.
According to the Ministry of Commerce, both nations “in principle agreed to include relevant [agricultural] products in the reciprocal tariff reduction framework, while also setting guiding goals to expand two-way trade in agricultural products,” in a statement that largely mirrored Saturday’s announcement.
The ministry’s statement failed to specify which products might be covered or reference the $17 billion purchasing commitment.
Beijing’s official statements typically contain less detail than Washington’s versions. China purchased 12 million tons of soybeans in late last year following an October summit agreement, though it never publicly confirmed this commitment.
The announcement also mentioned a trade board that will be established to identify and monitor $30 billion in goods eligible for tariff reductions to historical lows or below.
“We think the Chinese side will focus those reductions on U.S. agricultural products,” stated Even Rogers Pay, a director at Trivium China.
“The $17 billion purchase agreement and 25 million metric tons soybean deal, together, would roughly total out to just over $30 billion.”
The ministry also confirmed that China has renewed American beef company certifications, as Reuters previously reported, and will restart poultry imports from certain American states that experienced avian influenza outbreaks.
Additionally, China indicated it would address agricultural biotechnology concerns raised by Washington, without providing further specifics.
