China suspends anti-dumping probe into USA grain

Lester Mason
May 18, 2018

On Friday, the Commerce Department said it would halt the probe and reimburse the deposits. Treasury Secretary Steven Mnuchin is leading the talks with Chinese officials.

In the middle of its investigation, the ministry concluded that, "Anti-dumping and countervailing measures towards imported sorghum originating in the United States would have an effect on the price of dwelling of a majority of customers and wouldn't be within the public curiosity", in response to a discover posted on its web site. Neither country has yet imposed tariffs.

Meanwhile, the US Congress is looking set to advance a bill that would give the US greater power to block deals between American and Chinese companies that could risk national security, The Wall Street Journal said. Boeing is the largest U.S. exporter and already sells about a quarter of its commercial aircraft to Chinese customers.

In addition, China is reportedly offering to eliminate existing tariffs worth $4 billion on United States products such as fruit, nuts, pork, wine and sorghum.

The announcement was a possible sign Beijing is willing to make a deal with Washington amid talks between senior USA and Chinese officials aimed at averting a trade war between the world's two biggest economies.

The top-line number in the Chinese offer would largely match a request presented to Chinese officials by Trump administration officials in Beijing two weeks ago.

China proposes $200 billion in trade rebate as President Trump, encountering an economic war with China on one hand and a significant meeting with North Korea on the other hand, is contemplating a trade deal with Beijing that would ease tensions and pave the way for his renowned meeting with Kim Jong-un. The US goods deficit was US$375 billion a year ago.

China Chinese shipping port cargo Guangzhou Guangdong
Shipping containers are seen at Nansha terminal of Guangzhou port in Guangdong province China

China may buy up to Dollars 200 billion worth of American goods under intense pressure from the Trump administration to reduce its massive trade deficit with the United States, a media report said today, amid a round of high-level trade talks between the world's two largest economies. Authorities imposed preliminary anti-dumping tariffs of 178.6 p.c final month on the crop, which is used primarily for animal feed and liquor.

The US has threatened to impose 25 per cent tariffs on up to Dollars 150 billion in Chinese goods while China has targeted USD 50 billion in American exports.

"China has taught a lesson to the United States and showed how it can hurt U.S. exports", said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.

"Now they are showing goodwill by halting its anti-dumping investigation into sorghum imports, but it is a cheap way of showing goodwill as the USA doesn't have much sorghum left to export. The next U.S. sorghum crop will be harvested in August", Houe said. -China trade deficit on a sustainable basis would require a massive change in the composition of trade between them, and the news had been met with scepticism from economists.

The US officials did not have details on China's demands in exchange for the concessions.

US President Donald Trump told Liu on Thursday that China should import more US farm products.

Other reports by Iphone Fresh

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