Chinese officials confirmed this week they are working on finalizing a “phase one” agreement with President Donald Trump that includes significant purchases of U.S. ag products.
An official from China’s Commerce Ministry confirmed the purchases to reporters, but did not provide details on how much U.S. ag products China will buy.
The spokesperson says, “China will increase U.S. farm purchases based on domestic demand and market principles,” adding the U.S. will “provide favorable conditions.”
China will move forward with the purchases if President Trump cancels a planned round of tariff increases in December.
President Trump says the agreement included Chinese purchases of U.S. ag products worth $40-50 billion over the next two years, and suggested the initial agreement could be finished and signed next month.
Agriculture is taking a wait and see approach. Missouri Farm Bureau President Blake Hurst told Yahoo! Finance, “The challenge we have is that we’ve been promised a lot of things throughout these negotiations and not all of them have come to fruition.”