China Phase One Trade Deal Picking Up Steam

BEIJING, CHINA – After signing the Phase One Trade Agreement on January 15, 2020, optimism was high that the Chinese would purchase record amounts of U.S. commodities from farmers and ranchers. Eight days later, the Central Chinese city of Wuhan went on lockdown following the discovery of a novel coronavirus (COVID-19). Though some media reports suggest the Chinese have not been hitting the mile-markers in trade, the Foreign Agriculture Service suggests otherwise. Despite a slow start – due to the global economic shutdown – China is buying more U.S. agricultural products on their way to $12.5 billion more (over 2017 levels). In particular, pork shipments have more than tripled so far this year as African swine fever (ASF) has decimated the domestic Chinese herd – leading to a huge increase in demand. The Chinese are also buying more sorghum, corn, and soybeans from American farmers, though FAS admits the first six months of the deal have been disappointing as trade has slipped 16 percent below the 2017 benchmark. The optimism comes from expectations from the World Bank and others that the Chinese GDP (gross domestic product) will climb to a 7 percent growth rate in 2021 as the country adds 89 million more middle-class households in the coming decade
(SOURCE: All Ag News )