China is easing customs formalities for soybean imports across its northern borders from Kazakhstan, Russia and thus also indirectly from Ukraine. This was announced today by the Chinese Ministry of Commerce.
The measure is intended to help prevent China from becoming too dependent on agricultural imports from the USA. The USA is China's second largest supplier of soybeans. China now apparently wants to facilitate trade relations with its neighboring countries.
In future, importers will be able to use their licenses to deliver freight up to six times, provided the deliveries are always made via the same border crossing. This can be seen in a statement on the ministry's website on December 31.
However, the volume of agricultural commodity deliveries from Russia is only small.
China requires its importers to obtain a license that can be renewed every six months. In this way, China wants to facilitate the purchase of agricultural commodities from Russia and thus improve diplomatic relations with the neighboring country.
Today, US President Donald Trump announced that the first part of a bilateral trade agreement with China will be signed at the White House in Washington on January 15. In it, China undertakes to drastically increase its purchases of US agricultural commodities.
China imported 631,320 tons of soybeans from Russia in the first 11 months of 2019. Deliveries from Kazakhstan amounted to 14,262 tons.
Source
HANSA Terminhandel
