Trade war: China’s refusal to lift grain quotas make Trump’s phase one import demands ‘more difficult’
- China will not raise its quotas for the import of grains, according to vice agriculture and rural affairs minister Han Jun, raising the prospect of a stand-off with the US
- Analysts suggest that while corn, rice and wheat were only likely to make up a small part of farm good purchases, the refusal to budge makes it more challenging
China will not increase its grain import quotas to meet demands from the United States included in the pending phase one trade deal, a key member of Beijing’s negotiating team said, with analysts suggesting that this makes it “more difficult” to buy the requisite amount of American farm goods.
Some amount of this would likely be composed of corn, rice and wheat, however, China has not yet confirmed the figures, only saying it would import those with “good quality and market competitiveness”.
Despite opening the soybean market to the rest of the world, China still uses a tariff rate quota system for rice, wheat and corn, the staple grains in the world’s most populous country.
This is a global quota. We will not adjust it for a specific single country
“This is a global quota. We will not adjust it for a specific single country,” said Han Jun, vice-minister of agriculture and rural affairs at a forum in Beijing on Saturday, as reported by Caixin on Tuesday.