Economy

Trump accuses China of foot-dragging on farm purchases

Trump accuses China of foot-dragging on farm purchases

China and the United States recently concluded a ceasefire in the ongoing trade conflict between the two economic superpowers.

If Friday's trade data are in line with the downbeat forecasts or worse, it could spark concerns about a sharper-than-expected slowdown in China and the risk of a global recession.

U.S. -Chinese trade has weakened since President Donald Trump started hiked tariffs previous year on goods from China in a fight over Beijing's technology ambitions.

The U.S. has imposed tariffs on $250 billion in Chinese imports, drawing retaliatory sanctions from Beijing on $110 billion in U.S. products. In an interview with the Fox Business Network, Kudlow described the discussions as "preliminary" and said meetings will "probably" be arranged, but did not give more details.

For the first half of 2019, China's trade surplus with the US rose 5% to $140.48 billion, from $133.76 billion in the same period in 2018.

China bought 127,800 metric tons of U.S. soybeans last week, the equivalent of about two cargoes and a 79 per cent reduction from the previous week.

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U.S. President Donald Trump delivers remarks before signing an executive order on "advancing kidney health" in Washington, U.S., July 10, 2019. And a substantive solution likely would require China to scale back its ambitions to become a world leader in advanced technologies such as artificial intelligence and electric cars. Trump said at last month's G-20 meeting in Osaka, Japan, that Chinese President Xi Jinping had agreed to order large new purchases of us agricultural goods "almost immediately".

Trade weakness has added to pressure on Xi's government to shore up economic growth and avoid politically unsafe job losses.

"They have not been buying the agricultural products from our great Farmers that they said they would".

In the financial markets, Trump's tweet was reacted with some shock.

Washington has already imposed 25% of tariffs on US$250 billion of Chinese goods and China has retaliated with tariff hikes on US$60 billion of USA goods.

"China is going to be buying a tremendous amount of food and agricultural product, and they're going to start that very soon, nearly immediately. Hopefully they will start soon!" the president wrote. Trump said on Twitter. "While a deal makes sense for both sides this year, it's far from guaranteed and could hit many more snags".