China Resumes U.S. Soybean Purchases as Trade Talks Show Signs of Progress
China has resumed large-scale purchases of American soybeans for the first time in months, a gesture widely interpreted as a calibrated signal of goodwill before the expected meeting between President Xi Jinping and U.S. President Donald Trump.
Traders confirmed on Wednesday that COFCO Group, China’s state-owned food processing and trading conglomerate, placed orders for about 180,000 metric tons of soybeans for shipment between December and January from the U.S. Pacific Northwest. The decision comes after a prolonged period of trade friction that saw agricultural imports disrupted and negotiations stalled.
According to industry analysts, the purchase demonstrates Beijing’s willingness to separate essential commodity flows from broader geopolitical tensions, while maintaining leverage in the continuing tariff and technology disputes with Washington.
Market response and policy backdrop
News of the order briefly lifted soybean futures before prices retreated as U.S. farmers took profits from the previous session’s rally. The commodity had reached a 15-month high earlier this week on optimism surrounding a potential breakthrough in trade talks.
The China Federation of Logistics and Purchasing described the order as a “measured but meaningful” step in rebuilding supply channels disrupted since 2023. China typically accounts for about 45 percent of U.S. soybean exports, but volumes dropped sharply after Washington tightened export controls on high-technology goods and Beijing diversified suppliers to Brazil and Argentina.
China’s domestic demand for soybeans remains strong, driven by rising feed consumption and cooking-oil production. Imports are projected to reach 90 million tons this year, according to the National Grain and Oils Information Center, making a stable sourcing strategy critical for food-price management.
Official reaction and diplomatic tone
At a regular press briefing, Foreign Ministry spokesperson Guo Jiakun confirmed awareness of the COFCO purchase and reiterated that China’s position on agricultural cooperation “remains consistent.” He referred detailed questions to the relevant authorities, signaling that Beijing views the transaction as part of routine commercial activity rather than a political concession.
Policy advisers in Beijing said the timing of the move suggests that both sides are seeking a constructive environment ahead of the leadership meeting. “This is a confidence-building measure that allows practical engagement while avoiding public confrontation,” said Li Feng, an economist at the Chinese Academy of International Trade and Economic Cooperation.
The purchase follows preparatory discussions between Vice-Premier He Lifeng and U.S. Treasury Secretary Scott Bessent in Kuala Lumpur last weekend. Officials familiar with the talks said the two sides agreed to maintain communication on trade facilitation and investment restrictions, setting the stage for a higher-level exchange later this month.
Industry perspective and domestic priorities
Chinese agricultural analysts say the renewed imports underline the government’s broader focus on food-supply security and price stability. While Brazil remains China’s largest soybean supplier, logistical costs and seasonal weather concerns have encouraged buyers to re-enter the U.S. market.
“Diversification does not mean disengagement,” said Zhao Xintao, chief strategist at COFCO Futures. “China’s procurement strategy is flexible, guided by both economic logic and diplomatic context.”
U.S. officials were quick to frame the sale as evidence of progress in trade relations. Agriculture Secretary Brooke Rollins described it on social media as “a positive step forward for our farmers,” while farm-state associations called the development “encouraging.” However, Chinese experts emphasized that the transaction represents a pragmatic adjustment rather than a major policy shift.
