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China to Buy $17 Billion in Ag Products
5/18 7:11 AM
OMAHA (DTN) -- The White House on Sunday released details announcing China has agreed to buy at least $17 billion in agricultural products beyond the country's previous soybean commitments. In a fact sheet, the White House said President Trump and Chinese President Xi Jinping "agreed that the United States and China should build a constructive relationship of strategic stability on the basis of fairness and reciprocity." The two countries agreed to establish a new U.S.-China Board of Trade and a U.S.-China Board of Investment. In a fact sheet, the White House said: -- China will purchase at least $17 billion per year of U.S. agricultural products in 2026 (prorated), 2027, and 2028, in addition to the soybean purchase commitments that it made in October 2025. -- China restored market access for U.S. beef by renewing expired listings of more than 400 U.S. beef facilities and adding new listings. China will work with U.S. regulators to lift all suspensions of U.S. beef facilities. -- China resumed imports of poultry from U.S. states determined by USDA to be free of highly pathogenic avian influenza. The commitments appear to be less aggressive than in 2020 when President Trump signed the Phase 1 Agreement with China that detailed China would buy up to $40 billion a year in agricultural products. China never quite achieved that goal but did purchase $38 billion in U.S. agricultural goods in 2022. At that time, China bought more than $20 billion in agricultural products other than soybeans. The fact sheet also stated China will address U.S. concerns regarding supply chain shortages of rare-earth minerals. China will also address U.S. concerns regarding prohibitions or restrictions on the sale of rare earth production and processing equipment and technologies. China also agreed to buy 200 Boeing aircraft, the first purchases by China of American-made aircraft since 2017. Beef exports to China reached $1.95 billion in 2022 and were steady at $1.5 billion in 2024 before crashing to $468 million in 2025. Through March of this year, just $11 million in U.S. beef was exported to China, according to USDA export reports. Overall poultry products exported to China topped $1.1 billion in 2022 but declined to $542 million by 2024. Last year, poultry exports to China fell to $106 million. The Ministry of Commerce of the People's Republic of China also said Sunday, "The two countries will resolve or make substantive progress toward resolving non-tariff barriers and market access issues involving some agricultural products." The ministry stated the U.S. will loosen export restrictions on Chinese dairy and aquaculture products, as well as poultry. "The United States will actively work to address long-standing Chinese concerns including automatic detention measures targeting Chinese dairy and aquatic products, exports of media-grown bonsai to the United States, and recognition of avian influenza-free zones in east China's Shandong Province," the Chinese commerce ministry said. "China, for its part, will actively advance solutions to U.S. concerns regarding beef facility registration and poultry exports from certain U.S. states to China. "Moreover, the two sides agreed to promote two-way trade, including in agricultural products, through arrangements such as mutual tariff reductions on a range of products," the Chinese commerce ministry said. The U.S. Meat Export Federation said Friday, "China's General Administration of Customs (GACC) has granted a five-year registration extension to 425 overdue U.S. beef establishments in China's Food Import Food Establishment (CIFER) system." "Additionally, 77 new U.S. beef establishment registrations have been added to the CIFER system with an effective date of May 15, 2026, and registrations are valid for five years. There are 38 beef establishments which remain suspended. Of the suspended facilities, 25 were also expired and are now renewed, but remain ineligible for export." USMEF President and CEO Dan Halstrom added, "USMEF greatly appreciates U.S. beef access being prioritized at the summit meeting between President Trump and President Xi." "Renewal of U.S. beef establishment registrations is a critical step forward for U.S. beef exports to China," Halstrom said. "We await more details and a further readout from USTR's engagements with China and note with appreciation Ambassador (U.S. Trade Representative Jamieson) Greer's optimism for U.S. agricultural trade with China." Chris Clayton can be reached at Chris.Clayton@dtn.com Follow him on social platform X @ChrisClaytonDTN Jerry Hagstrom can be reached at jhagstrom@nationaljournal.com Follow him on social platform X @hagstromreport (c) Copyright 2026 DTN, LLC. All rights reserved. |
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