Bloomberg says China is looking at possible ways to speed up its purchases of American farm goods to meet its Phase One Trade Agreement commitments. However, it appears not everyone is happy with the idea.
The government is looking at speeding up the process because the coronavirus delayed some imports. Proposals include potentially buying 10 million tons of U.S. soybeans for Chinese state reserves if demand from private buyers isn’t enough. China could also fulfill its annual import quota of corn, which is currently at 7.2 million tons, with grain from America.
The Asian nation could also consider buying more than its quota, potentially reaching as high as 20 million tons of U.S. corn imports. China is also looking at buying one million tons of U.S. cotton for government reserves.
Bloomberg points out that there is some opposition to the planned buys. Some officials are questioning whether the government should be trying to expedite U.S. purchases given the downturn in the Chinese economy after the coronavirus outbreak.
The current round of discussions on the purchases is reported to be at the lower levels of the Chinese government, with no final decision made yet.