China orders state traders to stop buying American farm goods, threatening phase one trade deal
- Bloomberg reported China paused purchases of some American farm goods including soybeans as Beijing evaluates the ongoing tensions with the US over Hong Kong
- State-owned traders Cofco and Sinograin were ordered to suspend purchases, according to sources, throwing a new spanner in the works of the phase one deal
Chinese government officials told major state-run agricultural companies to pause purchases of some American farm goods including soybeans as Beijing evaluates the ongoing escalation of tensions with the US over Hong Kong, according to people familiar with the situation.
State-owned traders Cofco and Sinograin were ordered to suspend purchases, according to one of the people, who asked not to be identified discussing a private matter. Chinese buyers have also cancelled an unspecified number of US pork orders, one of the people said. Private companies haven’t been told to halt imports, according to one of the people.
Beijing’s move eroded the risk-on sentiment that had been prevailing over markets. S&P 500 Index futures gave up gains to trade 0.6 per cent lower, while US 10-year bonds erased declines. The onshore yuan reversed its advance, while soybean futures in Chicago, which had been as much as 1 per cent higher, were little changed.