China’s US barley, blueberry move focused on trade war deal, unrelated to coronavirus backlash against Australia

China will allow imports of barley and blueberries from the US from Thursday, making it easier to meet its commitments in the phase one trade deal

China’s largest state-owned food processor, manufacturer and trader COFCO also hinted it would speed up the buying of American farm goods, including soybeans

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China will allow imports of barley and blueberries from the US from Thursday, making it easier to meet commitments of the phase one trade deal. Photo: Getty Images

Published: 12:48pm, 14 May 2020Updated: 10:20am, 21 May 2020

China’s moves to permit further agricultural imports from the United States are viewed as being a step towards meeting the nation’s phase one trade deal commitments, although their role in the ongoing saga with Australian barley and beef exports remains unclear, analysts said.

China on Thursday said it would immediately allow imports of barley and fresh blueberries from the US, according to notices posted on China’s customs website, just days after it announced plans to impose a tariff on the grain while also blocking beef exports from Australia.

“The US barley imports is mainly due to the trade deal,” said Rosa Wang, a Shanghai-based analyst at agricultural data provider JCI China.

“To meet the targets, it is necessary for US farm products to enter China. It indicates that China is making an effort … but the Australian side is a separate matter.”

Even under normal circumstances, without Covid-19, it would have been difficult for China to meet its phase one trade deal commitments in farm goods purchases

Dan Senger

Trade data shows China is far from meeting its targets for importing American products as part of the agreement signed in January, with the coronavirus pandemic having severely disrupted supply chains on both sides.

“Even under normal circumstances, without Covid-19, it would have been difficult for China to meet its phase one trade deal commitments in farm goods purchases,” said Dan Senger, a consultant at CDI Global, who has advised Chinese businesses on overseas agricultural acquisitions for over a decade.

China, though, has been busy ramping up its purchases of US pork, while on Tuesday, it exempted 79 American products from tariffs, including rare earth mineral ores, aircraft radar equipment, semiconductor parts and medical disinfectants, making them cheaper for Chinese importers to buy.

The new list of exemptions was announced a day after China suspended imports from four Australian beef processing plants due to labelling and health certificate violations.