Sources: China offers to buy extra 10 million tonnes of US agri goods to ease trade war - FT

Dhwani Mehta FXStreet

According to the Financial Times (FT), people with the knowledge on the two countries’ ongoing negotiation, said that Chinese officials have offered to increase purchases of US agricultural products by 10 million tonnes a year amid a reset ahead of Thursday’s Washington talks between the two team and a new round of tariff hikes that takes effect from October 15^th.

Said one of the sources: “Liu He is coming with real offers, it’s not an empty visit. The Chinese are ready to de-escalate.”

A second source added: “China has fundamentally agreed to all of the USDA’s demands on beef, pork and lamb. They’ve got about 60 internal changes to their [import] process that they’ve agreed to. They’re taking great note of how [Trump’s] new Japan [trade] deal. . . led with agriculture and they are pushing in that same direction.”

The market is liking the Chinese efforts to reach an interim trade deal with the US, with the risk sentiment boosted and S&P 500 futures up 1%. The US Treasury yields are also gaining the upside traction, keeping USD/JPY underpinned around 107.35 region.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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