SHANGHAI: China is likely to import 30 million tonnes of soybeans from the United States in the latter part of the 2024 marketing year (Sept 1, 2023 to Aug 31, 2024), matching the amount imported in the previous marketing year, the US Soybean Export Council (USSEC) predicts.
Zhang Xiaoping, the USSEC’s country director for China, said that China has already imported 20 million tonnes of US soybeans so far for the 2024 marketing year.
Based on the current market demand and the situation of the South American supply, Zhang said that the estimated import volume from the United States is expected to remain at last year’s level, at around 30 million tonnes by the end of August.
Lance Rezac, vice-chairman of the USSEC, said the Chinese and US economies are deeply intertwined, and there is a great deal of potential for cooperation.
Rezac predicted that China’s overall demand for soybeans will drive continued growth in the American soybean trade.
From the 2024 marketing year to the 2033 marketing year, China’s total soybean imports, including those from the United States, are expected to rise from 101.5 million tonnes to 134.1 million tonnes, an average annual growth rate of 3.1%.
China imported 99.41 million tonnes of soybeans with an import value of 419.89 billion yuan in 2023, representing an 11.4% year-on-year increase in quantity and a 4.8% increase in import value compared to the previous year, data from China’s General Administration of Customs showed.
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The US Department of Agriculture confirmed on its website last week the private sale of 297,000 tonnes of US soybeans to China.
This announcement followed a meeting between US Secretary of Agriculture Tom Vilsack and China’s Minister of Agriculture and Rural Affairs Tang Renjian in Washington last Thursday.
Wang Xuejun, a professor of economics at Nanjing Agricultural University in Jiangsu province said China has been upholding the principle of diversification when it comes to procuring grains, with market dynamics, supply, demand and prices playing crucial roles in determining its agricultural purchases.
Acknowledging that a harmonious Sino-US economic and trade relationship benefits consumers and businesses on both sides, Wang said the significance of the Chinese market remains evident.
He added that there was substantial potential for agricultural cooperation between the two countries.
China has emerged as the world’s foremost importer of agricultural products, while the United States holds the position of the largest agricultural exporter.
“China is the primary market for US agricultural exports and also the leading purchaser of US commodities like soybeans, corn and cotton, among others,” he said.
China has consistently opposed the politicisation and weaponisation of economic and trade issues.
The country is committed to upholding global trade and investment liberalisation and facilitation, as well as maintaining the stability of global industrial and supply chains, said Wang Wen, executive dean of the Renmin University of China’s Chongyang Institute for Financial Studies.
In an unrelated development in the field of trade, He Yadong, a spokesman for the Commerce Ministry, said that the implementation of export control measures on specific graphite products is a widely accepted international practice.
Speaking at a news conference in Beijing last week, He said that China’s export control regulations are designed to adhere to international non-proliferation commitments and protect its national security and interests.
He made the comments in response to reports that certain Chinese graphite exporters have received clearance to supply their products to prominent South Korean battery manufacturers.
“China’s export control measures should not be viewed as a complete export ban, and the Commerce Ministry has granted approval for several graphite export applications that were in alignment with the applicable regulations,” He said. — China Daily/ANN