A soybean harvest at a farm in Harvard, Illinois, US.
(Bloomberg) — China will make “substantial” purchases of US soybeans, Treasury Secretary Scott Bessent said Sunday after talks with Chinese counterparts, in a sign that the relations are thawing ahead of a possible leaders’ meeting.
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Bessent’s comments to CBS’s follow two days of meetings with Chinese Vice Premier He Lifeng and other officials in Kuala Lumpur, Malaysia. An initial consensus was reached on various bilateral issues including agriculture, according to a statement from the Chinese Ministry of Commerce.
The move underscores efforts by both sides to stabilize relations after months of on-and-off tensions and exchange of sharp rhetoric.
If confirmed by Beijing, the pledge to step up purchases of US supplies would bring major relief to American farmers struggling with financial stress after China, their top buyer, walked away this season. The Chinese government has wielded soybean imports as a major bargaining chip throughout its trade dispute with Washington, helping to strengthen its leverage in the latest round of negotiations.
US President Donald Trump has said repeatedly ahead of the planned meeting with China’s leader Xi Jinping that he would press Beijing to resume purchases of US soybeans.
Renewed Chinese buying may not offer much immediate support for US growers, as crushers in China have already secured ample soybean supplies that can cover their demand through this year and part of next, narrowing the window for new US sales.
Even so, US Trade Representative Jamieson Greer said “China actually has not covered all its soybean needs for December and January so they still really need American product.”
“We expect that China will have to resume those purchases if they want to have a good deal with the United States,” he said in a interview.
Any increase in imports from the US could weigh on domestic soymeal prices in China, deepening losses for processors already contending with thin margins.
In the longer term, Beijing is expected to stick with its strategy of diversification — deepening ties with friendly suppliers such as Brazil while expanding domestic production. The recent trade tensions have shown that China can almost all but shun US soybeans if needed, and it’s likely to ensure it never again depends on its main geopolitical rival for a crop so vital to its food security and economic stability.