China to Buy More U.S. Farm Products as Trade Talks Resume

(Bloomberg) --

Companies are expected to sign fresh deals on American products without having to pay retaliatory tariffs, as trade talks between China and the U.S. resume on Monday, state media reported late on Sunday.

Some Chinese companies have applied for an exemption from paying retaliatory tariffs, state media Xinhua News Agency said on Sunday. Firms have already bought some farm goods after asking for price quotations on products such as U.S. soybeans, cotton, pork and sorghum on July 19, Xinhua reported, citing China’s Commerce Ministry and the National Development and Reform Commission.

Bloomberg News earlier reported that several domestic companies have been approved to buy certain U.S. farms good tariff free. The companies will buy more from the U.S. if the price and quality are acceptable, said Xinhua.

U.S. soybean supplies to China, the world’s biggest market, slumped in the first half of 2019 to the lowest level in more than a decade as little progress was made on ending a trade war between the two countries.

Senior U.S. officials are set to travel to China on Monday for the first high-level, face-to-face negotiations since talks broke down in May. President Donald Trump had complained that China hasn’t increased its purchases of American farm products, a promise he said was secured at a meeting with Xi Jinping at the Group of 20 summit in Osaka last month.

Read more: China Approves Tariff-Free U.S. Soybean Purchases as Goodwill

China said the U.S. should take concrete steps to implement what’s been promised and create favorable conditions for trade cooperation, according to Chinese state media.

©2019 Bloomberg L.P.