Three sources have told Reuters that China is looking to purchase up to 30 million tons of crops from the U.S. to help rebuild state stockpiles.
The Asian nation is looking to protect itself from further supply chain disruptions brought on by the COVID-19 outbreak. It would also help China make good on its Phase One Trade Agreement promises to buy more U.S. crops.
China is planning to buy approximately 10 million tons of soybeans, 20 million tons of corn, and one million tons of cotton and add them to its state reserves. Reuters says those numbers come from two of the sources who were briefed on the government’s plan.
The bulk of the crops are expected to come from the United States. “The main message from Beijing is to help secure people’s livelihoods,” one of the sources tells Reuters. “It’s a good time to build up reserves, especially when the prices of the goods are at quite low levels.”
Beijing is also planning to buy one million tons of sugar and two million tons of soybean oil to add to its reserves. The sources aren’t clear on where those supplies would be coming from.