China buys 5bn worth soybean us
You're referring to a significant trade deal!
On July 24, 2020, China's state-owned grain trader, COFCO, announced that it had purchased 5 billion US dollars' worth of soybeans from the United States. This deal was seen as a major breakthrough in the trade relationship between the two countries, which had been strained due to the ongoing trade war.
The purchase was made through a series of transactions with various US soybean exporters, including Archer Daniels Midland Company (ADM), Bunge Limited, and Cargill, Inc. The soybeans were expected to be shipped to China over the next several months.
This deal was significant for several reasons:
- Large volume: The 5 billion US dollars' worth of soybeans is a massive purchase, equivalent to about 1.5 million metric tons of soybeans.
- Trade war relief: The deal was seen as a relief for US soybean farmers, who had been heavily impacted by the trade war with China. The tariffs imposed by China on US soybeans had led to a significant decline in US soybean exports to China.
- Sign of improved relations: The deal was seen as a sign of improved relations between the two countries, which had been strained due to the trade war. The purchase was made possible after the US and China reached a phase-one trade agreement in January 2020, which aimed to reduce tensions and increase trade between the two countries.
Overall, the 5 billion US dollars' worth of soybean purchase was a significant development in the US-China trade relationship, and it marked a positive step towards increased trade and cooperation between the two countries.