As trade talks loom, Chinese firms look into buying US farm goods

Move comes days before planned meeting of US, Chinese negotiators in Washington

BEIJING: Chinese companies have started to inquire about prices for US agricultural goods purchases, Beijing said on Thursday, in a further sign of potential de-escalation in the bitter and protracted trade war between the world's two largest economies.

The move comes before a planned meeting in early October between top US and Chinese trade negotiators in Washington aimed at easing a trade conflict that has disrupted global supply chains and rattled financial markets.

On Wednesday, Beijing and Washington both made concessions on planned tariffs, helping lift global stocks as well as China's yuan currency.

Speaking at a weekly news briefing in Beijing on Thursday, Chinese Commerce Ministry spokesman Gao Feng said China welcomed the US move.

"According to my understanding, Chinese firms have started to inquire about prices for US agricultural goods. (China) hopes both sides would continue to meet each other half way and adopt concrete actions to create favourable conditions for negotiations," Gao said.

Possible purchases of US farm goods included soybeans, Gao said, as they are still subject to hefty Chinese duties.

China reduced purchases of US farm products in August, after US President Donald Trump vowed to impose new tariffs on around $300 billion of Chinese goods, blaming Beijing for not having fulfilled a promise to buy large volumes of US farm products and abruptly dimming prospects of a trade deal.

Gao said working-level teams from both countries would meet soon to prepare for the next round of top-level talks between Chinese Vice Premier Liu He, and US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

On Wednesday, the United States agreed to delay increasing tariffs on $250 billion worth of Chinese imports from October 1 to October 15 "as a gesture of goodwill." The tariffs on those goods were set to increase to 30% from 25%.

Earlier on Wednesday, China announced it was exempting 16 types of US products from tariffs, including some anti-cancer drugs and lubricants, as well as animal feed ingredients whey and fish meal.