China and the United States resume soybean procurement cooperation, with a total procurement volume of 25 million tons over three years.

After the China-US talks, US Treasury Secretary released a big news! On October 30, according to foreign media reports, US Treasury Secretary Biden stated that China has agreed to purchase 12 million tons of soybeans this year. In the next three years, China has agreed to purchase at least 25 million tons of soybeans annually. What do we think about this statement by Biden? It is definitely true that China will resume purchasing soybeans from the United States.

If we really agree to purchase at least 25 million tons of soybeans from the US over the next three years, it means something big is happening between China and the US. From an economic perspective, purchasing US soybeans is actually in our interest. In fact, we are currently shifting a large number of our soybean orders to Brazil, and the price of Brazilian soybeans has already increased significantly. At this time, resuming the purchase of US soybeans will undoubtedly help reduce our procurement costs.

Regarding the volume of purchases, we purchased 22 million tons of soybeans from the US in 2024 alone. Purchasing 25 million tons of soybeans is not a big deal for us, and the total amount would be around 12 billion US dollars. From a political perspective, this deal may be even more beneficial. The reason why Trump particularly emphasized the purchase of soybeans is fundamentally because the US soybean farmers are a key source of support for Trump. Our purchase of soybeans helps Trump stabilize his popularity.

We must admit one thing: Trump is a rare president in American history who does not have ideology and is willing to make deals on major issues. Trump could completely reverse the policies of the Biden administration on the Ukraine issue, and Trump might also be able to reverse the US's long-standing policy on the Taiwan issue. Trump's term still has more than three years, and there will be midterm elections in the US next year. The three-year purchase period is a way to lock in Trump's base of support. A completely ruling president with a transactional nature is something we look forward to. Therefore, apart from the balanced economic and trade considerations, this may also be a strategy for us to resolve major issues.

Original article: www.toutiao.com/article/1847412498996490/

Statement: This article represents the views of the author.