China seeks soybean boost for trade war advantage
China is looking to increase its soybean output this year as the country and the U.S. face the prospect of a trade war.
Beijing has threatened to impose a 25% tariff on American soybean imports in retaliation for Washington’s trade measures. But China needs soybeans. The country is the world top importer and consumer of soybeans, which are mostly used as livestock feed.
As reported by Reuters, citing postings on city government websites, authorities in the northeastern Heilongjiang and Jilin provinces in China met last weekend to discuss actions to boost planting of soybeans.
Increased plantings would mean that the country would be less reliant on imports from the U.S., which is its second-ranked supplier.
China is expected to import 96 million tons of soybeans in the 2017-18 year, according to official numbers. Domestic production is seen at 14.6 million tons.
The big concern is that the tariffs would drive up global soybean prices.
Soren Schroder, the CEO of food production company Bunge, told Bloomberg soybean sales from the U.S. to China have essentially ground to a halt since Beijing threatened tariffs on imports.