We talked to Hu Mu, the chinese Attache, about the recent upsurge in soy purchases in America. Is this really trade progress?
PM: Ambassador MI!
HM: Patwiot Moose
PM: So let’s get to brass tax. Trump says they have completed trade deal part one and as proof theres the new Chinese Soy purchases?
HM: Twade deal? Wook wook. There no twade deal. We buy soybeans cause all pigs dead ok? Swine flu. We need to re-grow a billion pigs. That’s a lot of soy!
PM: So this isn’t happening because of the trade deal?
HM: No, we buy soy everybody. Have you seen a hungry pig? Wook wook the twade deal is just a game. Trump never raised Tariffs that were supposed to happen in OCTOBER! It’s the next year! Trump he pussy. He big pussy
PM: But what about the claims that there will be new tough enforcement for intellectual propwerty .. er Property theft
HM: enforce all you wan’t China no care. We keep stealing. In fact the enforcement best thing ever, it make companies twust china with even BIGGER more valuable twade secrets! We take it all!
PM: Is there nothing America can do?
HM: Wook, wook I didnt say this (stuffing his face with potstickers) and if you say I did I will deny it on a stack of Mao Red Book. China in bad shape. We only got 8% growth this year. How can we rule the world on 8% growth? So all Twump has to do is put on sanctions to balance out the dollar flow. That’s 50% sanctions. Then no way China can get ahead. Will Twump do it? No! He big pussy like in sopwanos. He wont even do 20% tariffs.
PM: Well thank you for your time and the inside scoop. And when china does take over the world because Trump is an idiot, I hope there might be a place in the kingdom for ambassador Mouse!
HM: Don worry we take care of you …. grandma make best corn fried mice west of Shanghai!
the surge in US soybean imports was not some trade war concession aimed at the US because as US imports jumped, so did China’s imports from its top Latin American markets: specifically, in November, China bought bought 3.9 million tons of soybeans from Brazil, Beijing’s largest supplier, up from 3.8 million tons in October and 5.1 million tons in November last year; imports from Argentina also rose from 959,936 tons in October to 1.4 million tons, and up from a tiny 36,119 tons in November last year.
According to China’s National Grain and Oils Information Center, December imports may climb to about 9 million tons following more shipments from U.S., which could ease supply shortages at some crushers.
And while China is unlikely to order less soybean from either Brazil or Argentina any time soon as the two nations have emerged as the two key supply chain alternatives to the US, where any trade goodwill may be undone with stroke of a tweet, Bloomberg notes that Chinese companies are likely to continue purchasing American soybeans especially if the two countries sign the partial trade deal in early January, in line with the market’s expectations.
There is also China’s desperation to repopulate its decimated pig population and to do that, Beijing needs access to all the soybeans it can get. It explains why China has been issuing regular tariff waivers (which cover 30% of the retaliatory tariffs on US soybeans) for domestic firms to buy U.S. soybeans.
That said, China was quick to pretend like the surge in US soybean purchases was in fact some concession, and shortly after the news of the import jump hit, China’s infamous twitter troll, Global Times editor Hu Xijin, tweeted “congrats to US farmers” adding a tacit threat that US farmers should “prod” the US government to sign the Phase One deal if they want China’s vital goodwill to continue, to wit: “meanwhile please prod the US government, making sure the two countries can sign phase one deal smoothly and the next trade talks continue to make progress. This is vital to stabilize China’s purchase of US farm products.”