- The Chinese Ministry of Commerce and the U.S. government have reached a principled consensus after recent trade negotiations, aiming to mutually reduce tariffs on certain agricultural products. This is intended to maintain the previously established trade truce agreement and set guiding targets for bilateral agricultural trade.
- According to an official statement released by the White House, China has committed to purchasing at least 25 million tons of U.S. soybeans annually by 2028, and to purchase U.S. agricultural products worth no less than $17 billion annually in 2027 and 2028, with proportional adjustments in 2026.
- Although China and the U.S. have reached a policy framework consensus, the current actual progress in bulk commodity purchases still shows a significant gap compared to the targets promised in the agreement. High existing tariffs and political uncertainties have led most private crushing companies to adopt a wait-and-see attitude.
Policy Consensus and Tariff Reduction Framework
He Yadong, a spokesperson for the Chinese Ministry of Commerce, confirmed at a routine press conference on Thursday that China and the U.S. have reached a principled consensus after trade negotiations. This consensus plans to include relevant agricultural products in a reciprocal tariff reduction framework, committed to maintaining the trade truce agreement reached last year.
Procurement Commitments and Quantitative Targets
According to the latest official statement from the White House, China has made several clear quantitative procurement commitments in the trade consensus reached this time. Specifically, China has committed to purchasing at least 25 million tons of soybeans from the U.S. annually by 2028.
Current Procurement Progress and Market Sentiment
Although the macro-level trade truce agreement continues smoothly, the current actual performance and agricultural product procurement progress still show significant phase delays compared to the established targets.
Trade Environment Outlook and Variable Assessment
In response to the current insufficient procurement progress and unstable market confidence, Chinese officials have stated their willingness to work with the U.S. in the subsequent implementation of the agreement to create more favorable external conditions and policy environments for bilateral agricultural trade.
