China has resumed purchasing US soybeans for the first time this season, signalling a potential thaw in trade tensions as Beijing and Washington move closer to finalising a comprehensive trade agreement.
The deal, which could roll back several tariffs and export restrictions, is expected to be agreed upon when Chinese leader Xi Jinping and US President Donald Trump meet later this week.
The renewed agricultural trade comes after months of stalled negotiations and shifting global supply chains that forced China to source soybeans from South America at higher costs.
A resumption of US exports could ease pressure on Chinese crushers, stabilise domestic feed prices, and restore balance in global soybean flows.
The development, reports Bloomberg, highlights how progress in trade diplomacy can swiftly influence key commodity markets and reshape the economic ties between the world’s two largest economies.
Two soybean cargoes booked amid trade framework
Bloomberg states that China has bought at least two cargoes of US soybeans for delivery later this year.
The purchase marks Beijing’s first known order from the new harvest and could restore agricultural flows that had been largely frozen amid escalating trade disputes.
The shipments were confirmed after US and Chinese officials reached a broad framework deal during negotiations held in Malaysia over the weekend.
The talks reportedly resolved a range of contentious issues that have strained economic ties between the two nations over the past year.
Beijing shifts from South America to the US
Beijing had avoided sourcing soybeans from the US since the start of the current export season, using the commodity as leverage in trade discussions.
Chinese crushers, which rely heavily on soybeans for animal feed production, turned instead to South American suppliers such as Brazil and Argentina.
While this diversification helped China reduce its dependence on US imports, it also brought higher costs and exposure to weather-related risks.
The renewed purchases suggest that Beijing may now be seeking to stabilise its supply chain and mend its commercial ties with American producers.
Soybean purchases seen as a goodwill gesture
As per Bloomberg, US Treasury Secretary Scott Bessent indicated earlier this week that he expected China to make “substantial” purchases of US soybeans following progress made during recent trade talks.
The move aligns with broader efforts by both governments to ease trade frictions and restore normal trading conditions across key agricultural and industrial sectors.
China’s decision to re-enter the US soybean market could serve as a symbolic gesture ahead of Thursday’s high-level meeting between the two leaders.
Experts believe the purchase reflects Beijing’s willingness to show commitment to the emerging deal, which is expected to include tariff rollbacks and renewed export permissions for critical commodities.
What a potential deal could mean for global markets
If the agreement is finalised, it could have significant implications for global commodity markets, particularly soybeans, which remain a cornerstone of agricultural trade between the world’s two largest economies.
Restoring this flow would not only benefit US farmers but also stabilise prices in China’s domestic market, which has faced pressure from higher import costs.
The renewed trade momentum suggests both sides are seeking to reduce uncertainty ahead of a critical diplomatic milestone.
With Xi and Trump due to meet on Thursday, the upcoming discussions are expected to set the stage for a wider economic settlement that could reshape agricultural and industrial trade between the two powers.
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