US, WASHINGTON (ORDO NEWS) — Chinese authorities have asked major state agricultural companies to suspend purchases of some US agricultural products, including soybeans, as Beijing negatively assesses the ongoing escalation of tensions with the US over Hong Kong. It is reported by Bloomberg, citing sources familiar with the situation.
State traders Cofco and Sinograin were instructed to suspend purchases, said one of the agency’s interlocutors. According to one source, Chinese buyers also canceled an undetermined number of orders for American pork. Private companies did not receive orders to terminate imports, one source said.
If the messages are confirmed, this would jeopardize the implementation of the first-phase trade agreement that Washington and Beijing signed on January 15. As part of the deal, China pledged to increase purchases of US goods from the base level of 2017 by $ 200 billion over two years.
The COVID-19 pandemic exacerbated tensions between the two largest economies in the world. Contradictions over Beijing’s policy on Hong Kong exacerbate the situation . The United States believes that China’s actions undermine the autonomy of the special administrative region.
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