China Resumes Limited US Oil purchases, Drops Google Antitrust probe Amid Trade Talk Preparations
BEIJING – China is taking incremental steps to easeโข tradeโ tensions with the United States ahead of anticipated face-to-face negotiations later this year, including โresuming purchases of US oil after a six-month pause and dropping an antitrust โคexamination intoโฃ GoogleS โAndroid operating system, according to reports. However, China continues to largely avoidโ US soybean purchases, a pattern notโ seen since theโค 1990s, despite president Trump’s calls for โขa โฃquadrupling of orders.
While a broader trade โคdeal remains unlikely to be finalized over the phone,โข according to analyst Rothman, agriculture – especially soybeans – will โbe central to any agreement. Both sides are expected to pursue more realistic commitments than those outlined in the original Phase โOne agreement.
China’s avoidance of US soybeans carries supplyโ risks.Brazilian soybean prices have risen sharply this year, โขand potential disruptionsโฃ to the south American harvest could โคtighten global โsupply, potentially โforcing china to โขdraw on its strategic reserves. Conversely, a sudden influx of US soybeans could depress domestic soymeal prices, disrupting existing stockpiling and hedgingโ strategies.
Purchasingโฃ managers in northern China report securing supplies only โคthrough next month due โtoโ current high inventories, with โขone major crusher warning of potential meal price crashes from a US soybean surge.โข Both sources requested anonymity.
Despite tariffs, the US remains a highly efficient, low-cost soybean โคsupplier, and China isโค currently paying a premium to source beans elsewhere, according to Trivium’s โPay. During the initial trade war, China granted some exemptions allowing limited US agricultural imports even while imposing retaliatory tariffs.
“If a deal is struck, there will definitely be some level of demand โขfor USโฃ soybeans from Chinese buyers,” Pay stated. “Theโข issue is the trade war – โnot a total โlack of demand.”