US agricultural sector ‘engaging with China as much as ever’ in hope of trade war breakthrough

Relationship-building with Chinese customers seen as laying foundation for an end to the dispute or potential purchases of US goods, such as soybeans

State and regional bodies say tariffs have not stopped efforts such as taking companies to trade shows

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Chinese orders of US soybeans have slumped during the trade war. Photo: Xinhua

Published: 10:00pm, 18 Sep 2019Updated: 4:05pm, 19 Sep 2019

The revival of US-China trade talks and signs that large soybean orders could be coming from China are being watched carefully in the American agricultural heartland.

Throughout the protracted trade war between Washington and Beijing, state governments and regional trade groups in the United States have continued building and maintaining ties with Chinese buyers and local governments, despite being hit hard by tariffs on their farm goods.

A delegation led by Liao Min, China’s Vice-Minister for Finance, is set to take part in trade talks in Washington on Wednesday, China has said, paving the way for high-level talks next month between Chinese Vice-Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin – in which agricultural goods are expected to be high on the agenda.

This week’s talks follow China’s announcement last week that it would exempt some agricultural products, including soybeans, from further tariffs, opening the door to significant purchases.

Any such purchases would reward the strategy of Midwestern states and regional trade offices that have maintained ties with Chinese counterparts, in the hope that these relationships, which took years to forge, will outlast the trade war.