SOYBEANS, AIRPLANES AND OIL
Economic issues continue to be a flashpoint between the world’s biggest consumer and its biggest factory.
Trump has made tariffs on imports a pillar of his strategy to revive domestic manufacturing jobs.
US Vice President JD Vance on Wednesday unveiled plans for a preferential trade bloc of allies for critical minerals, part of an effort to eliminate leverage that China has over the United States because of its control of key metals.
The two sides are working to find areas of accord heading into an expected April state visit by Trump to Beijing. Trump and Xi last met in person in October in South Korea, where their current trade truce was struck.
Soybeans are key because struggling US farmers are a major domestic political constituency for Trump, and China is the top consumer. Overseas sales of US soybeans this year slumped to the lowest in 14 years due to trade tensions with China.
Benchmark Chicago Board of Trade soybean futures surged more than 3 per cent to a two-month high.
US supplies are not sufficient to export another 8 million tons to China while also meeting expected demand from other importers, said Arlan Suderman, chief commodities economist for StoneX, a consultancy.
US soybean prices could rise and some US and international buyers could satisfy demand by buying soybeans from Brazil instead, he said.
China’s commerce ministry did not immediately respond to a Reuters request for comment on the possibility of soybean purchases.
US Representative Ro Khanna, a Democrat who sits on a committee focused on China, criticised Trump’s dealmaking.
“He points to China’s soybean buying as proof of progress, despite volumes still trailing where they stood before he took office,” Khanna said in a statement.
“He says nothing about China’s aggression towards Taiwan, support for Putin’s invasion of Ukraine or human rights abuses.”
In addition to soybeans, the US and Chinese leaders discussed Iran, Russia’s war in Ukraine, airplane engines and oil and gas, Trump said.
China has been Venezuela’s top oil buyer for years, and the sales helped Caracas repay massive loans to Beijing in debt-for-oil deals.
The United States removed President Nicolas Maduro last month, and it has suggested that China will have to buy Venezuelan oil on US terms.
