China Halts Purchases of US Agricultural Products
Beijing: China on Tuesday announced that its state-owned companies have halted their purchases of agricultural goods from the US in response to Washington's ramping up of tariffs on Chinese imports, a move that will further escalate the ongoing trade war between the two economic giants.
In a statement posted on its website, China's Commerce Minister said that the US' decision to slap an additional 10 percent of tariffs on $300 billion worth of Chinese products, effective September 1, was a "grave violation" of the agreements reached at the June 29 meeting between Presidents Xi Jinping and Donald Trump on the sidelines of the G20 summit in Osaka, Japan, reports Efe news.
China is one of the largest buyers of American agriculture, making this decision a serious blow to US farmers and traders.
The Ministry added that it would not rule out tariffs on newly-purchased agricultural goods after August 3.
It boasted of China's large market capacity and the "bright prospects" for the import of high-quality US agricultural products.
However, the Ministry made it clear that these "bright prospects" were subject to Washington implementing the consensus reached at the meeting between the Chinese and the US Presidents as well as putting into practice the commitments to create the necessary conditions for cooperation in the agricultural sector between the two countries. Tuesday's announcement comes amid rising tensions in the trade war that both countries have been waging since last year, and which has taken a new turn since Trump announced new tariffs due to a lack of progress in trade negotiations.
In what many analysts believe is a response to the new tariffs by Trump, the Chinese yuan on Monday fell past the psychologically-important level of 7 yuan to the dollar for the first time since April 2008. (IANS)