Trump administration claims progress over China farm purchases
- White House says China bought US$23bn in farm products, but some believe the figures are ‘overly optimistic’
- Total includes sales that have yet to be shipped and may not meet end-of-year deadline
The Trump administration said China has met 71 per cent of its agricultural purchases under the phase one trade deal.
The US government said Friday that China had purchased US$23 billion in American farm products this year, but that amount includes both goods that have been shipped and also those sold but not yet exported.
But the figure has been questioned as “overly optimistic” because some of the sales may only hit the water after the December 31 deadline and the contracts may still be cancelled, said Joseph Glauber, a former chief economist at the US Department of Agriculture.
The report, which paints a rosier picture of the trade deal than export figures currently show, was released less than two weeks ahead of the elections.
President Donald Trump, who has given billions of dollars in aid to farmers hurt by the trade war and the coronavirus pandemic, is counting on overwhelming support in rural areas across the Mid West farm belt to be re-elected.
“The number 71 per cent is wishful thinking,” Glauber, who headed the USDA’s economic analysis under George W Bush and Barack Obama, said. “I think the idea that all of that will occur in 2020 is highly unlikely, just based on previous years’ shipping patterns.”