China Substitutes U.S. Soybeans And Wheat With Soybeans And Wheat From Russia
China’s General Administration of Customs has approved of wheat and soybean imports from Russia while completely halting U.S. soy imports as the trade disputes between Beijing and Washington deepens, according to Reuters.
Despite having promised to resume purchasing agricultural products from the U.S. at the Group of 20 Summit in Osaka last month, Chinese president Xi Jinping has instead chosen to import wheat and soybeans from Russia. This is expected to bring Russia closer to their goal of increasing their grain exports.
China had been the top purchaser of U.S. soybeans until the U.S. implemented a wide range of tariffs on Chinese products. Beijing placed a 25% tariff on soybean shipments in response.
Russia plans to invest billions of dollars into grain infrastructure to raise its exports to at least 55.9 million tons by 2035 and is expected to export 41.9 million tons this year.
Russian president Vladimir Putin announced a plan last year to increase the country’s agricultural exports to $45 billion by 2024.