June 3, 2020

China ordered state firms to stop importing soybeans and pork?

After the US said it would end special trade treatment for Hong Kong to punish Beijing, China has made a retaliatory move by allegedly directing state-owned firms to stop importing soybeans and pork from the US, CNBC reported, citing as sources two people familiar with the matter.

"China has asked main state firms to suspend large-scale purchases of major US farm products like soybeans and pork, in response to US reaction to Hong Kong," the source said, according to the report.

Last Friday, May 29, President Donald Trump said his administration was starting the process of eliminating Hong Kong's favored trade status with the US, in response to a controversial new security law passed by China's parliament that would effectively bar political protest in Hong Kong.

The CNBC source said that after Trump's announcement, Chinese importers have since cancelled 10,000 to 20,000 tonnes of American pork shipments, which were equivalent to about one week's orders.

CNBC's sources said China could expand the order to include additional US farm goods, depending on whether Washington will take further action.

One of the sources also said that large-volume state purchases of US corn, as well as cotton, have also been put on hold.