China turns to Russia for more soybean supplies
Aug 09, 2019 (China Knowledge) - Chinese soybean companies are investing in Russia, and more farmers are leasing lands in Russia to grow soybeans as a way to boost their exports. China the world's largest consumer of soybean has been cutting soybean imports from the U.S. amid the China-US trade dispute, and turned to increase such imports from Russia.
China consumes 110 million tons of soybeans on average per year, but only produces about 16 million tons by the country itself.
The country's soybean imports from the U.S have slid since July last year due to the fallout of the China-US trade relations. China had been the top buyer of U.S soybeans, but Beijing imposed a 25% tariff on American soybean shipments in 2018 as a countermeasure against U.S tariffs on a range of Chinese products. Data from China's General Administration of Customs shows that the country's soybeans imports from the U.S plummeted about 49.4% to 16.64 million tons last year.
Chinese companies have halted buying of agricultural products from the U.S after the U.S President Trump announced to hit a 10% fresh tariff on USD 300 bln worth of Chinese goods on Aug 2.
According to a report released by the agriculture ministry's Foreign Economic Cooperation Center last November, more than 20 Chinese soybean companies have invested in Russia. Among them, small- and mid-sized firms engage in farming and basic processing.
In 2018, it imported more than 800,000 tons of soybeans from Russia, up by 64.7% YoY. On July 25, the country's General Administration of Customs approved soybean imports from all parts of Russia and almost halted U.S soybean imports due to the escalating trade disputes.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: firstname.lastname@example.org
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI