Fuelling the trade war further between themselves and the United States, China has been reported to stop purchasing American Soybeans going forward. China is the world’s largest Soybean buyer and was one of the key saviors for an already dwindling American farming sector. As per a report in Bloomberg, China haven’t cancelled any previously placed orders, but have stopped creating any new orders.
As per an official government data, China has bought 13 million tonnes of Soybean from America after the trade war went official. China had already agreed to buy 10 million tonnes more, 7 of which haven’t been delivered yet. Once that is completed, it is believed China will never return to the United States for buying Soybean. There are speculations that China may opt for Soybean supplies from Brazil. China raised the tariffs on US Goods worth USD 60 billion. Trump run government announced an aid package of USD 16 billion to farmers who’ll be affected by this rise in tariffs. Chinese officials have now started speaking on the issue stating the United States to be overestimating their power. They also accused them of spreading ‘economic terrorism’. US farm income had slipped to just USD 63 billion in 2018, which is just around half of what it used to be back in 2013.
United States went rampant with their trade war stance against China as they enlisted World’s second-largest smartphone manufacturer, Huawei in their entity list. This has caused a major furore in the industries all across the globe. The United States have gone ahead and urged the European Nations to step up and join their battle against the Chinese tech giants. Huawei does have the backup plans in place and if it does work out well for them, the monopoly held by American companies can soon get shattered.