China will reinstate soybean import licences for three U.S. companies and lift its suspension on American log imports beginning November 10, according to China’s customs authority, Reuters reported Friday. The move marks another step toward easing trade tensions between the world’s two largest economies.
Import licences for CHS, Louis Dreyfus Company Grains Merchandising, and EGT were originally suspended in March amid intensifying trade frictions. The halt on U.S. log shipments had also been imposed as a countermeasure following President Donald Trump’s March 1 directive to investigate lumber imports.
Market sentiment has improved noticeably since Trump met Chinese President Xi Jinping in South Korea, helping to calm fears of stalled negotiations. In the days following the meeting, Beijing rolled back some of the tariffs it introduced in March and initiated limited purchases of U.S. agricultural goods, including two cargoes of wheat. State-run COFCO also secured three U.S. soybean cargoes ahead of the leaders’ talks.
Despite these positive signals, traders remain cautious. A 10% tariff on all U.S. imports including agricultural products is still in place, tempering expectations of a full rebound in trade flows.
