China makes first big USA soybean purchase since Trump-Xi truce

China makes first big USA soybean purchase since Trump-Xi truce

China makes first big USA soybean purchase since Trump-Xi truce

Trump told Reuters in an interview that the Chinese government was "back in the market" to buy soybeans after a December 1 truce in the U.S. General Motors sees their shares jump up to more than 4 percent in premarket trading, while both Ford Motor Company and Tesla rise up to 3 percent.

On the bright side, China-based music streaming company Tencent Music Entertainment gained 7.7 percent in its New York Stock Exchange debut on Wednesday.

The US has hit a total of US$250 billion worth of Chinese goods with tariffs since July, and China has retaliated by imposing duties on US$110 billion of US goods.

According to Trump, trade talks with Beijing are already under way by telephone, with more meetings likely among USA and Chinese officials.

China has reportedly proposed cutting tariffs on US-made cars to 15%, the same tax levied on vehicle imports from other countries.

On Tuesday afternoon, USA time, Trump curiously tweeted "Very productive conversations going on with China!" If they can't, the higher USA tariffs will go into effect on the $200 billion in Chinese imports.

The trade war has taken a toll on auto companies that manufacture in the USA, with the makers of Mercedes-Benz and its rival BMW both warning of lower profits this year as tariffs forced them to hike prices in China.

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Chinese state-owned companies bought at least 500,000 tonnes of USA soybeans, two US traders said, in deals valued at more than $180 million.

"When people in the cash market started to hear that China was buying, we started to worry less about politics and more about the balance sheet", Basse said, alluding to massive USA soybean inventories and prospects for a record-large harvest in South America in the next few months.

USA media reported that China plans to roll back tariffs on United States auto imports from 40 percent to 15 percent.

Chinese President Xi Jinping's government has taken steps this week to soothe the US, including a plan to cut tariffs on USA cars to 15 percent from 40 percent. Ford exports more of its cars to China than GM, Dzichek said, because it has less of a footprint in the country.

The move also shows that Beijing is perhaps serious about following through on promises made during Trump and Chinese President Xi Jinping's dinner at the G20 meeting in Buenos Aires, Argentina. China's decision came amid a period of heightening tensions between the USA and China over trade and intellectual property issues. There was also no response from the White House nor the US Trade Representative's Office.

In a tweet, Mr Trump said the two sides were having "very productive conversations". Soybeans are the single most valuable USA agricultural export and China bought 60 percent of those exports past year, worth US$12.25 billion.

Commodities traders and analysts said soybean prices may struggle to build on Wednesday's gains unless China buys considerably more soybeans.

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