US, WASHINGTON (ORDO NEWS) — Chinese state-owned companies have canceled some shipments from US agricultural exporters as tensions between Washington and Beijing increase. It is reported by The Wall Street Journal, citing sources familiar with the situation.
“Several batches of feed for livestock, corn, pork, cotton and some imported meat supplies are being postponed,” an unnamed manager of a shipping company involved in agricultural imports to China told the publication.
The cancellations, first reported by Bloomberg, relate to orders made after Washington and Beijing signed a first-phase trade agreement on January 15. As part of this deal, China pledged to increase purchases of US goods from the base level of 2017 by $ 200 billion over two years.
The second source in the shipping company said that Chinese state importers canceled shipments from 15 thousand to 20 thousand tons of American pork. Beijing is also holding back some supplies of US corn and cotton, and further action will depend on Washington’s reaction to Beijing’s policy towards Hong Kong, the source said.
If Washington tightens its response, “we can return to another round of duties and restrictions,” the source said.
According to sources, state importers of China Oil and Foodstuffs Corp. and China Grain Reserves Corp. canceled their delivery.
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