United States Agriculture Official on Tensions with China
United States Agriculture official said on Wednesday, the U.S and China are still in the early stages of their trade war. Also, the tensions that arise from it should be considered the ‘new normal.’
According to the Deputy Chairman of the USDA, Mark Jekanowskie, Washington blamed China to be accountable for its trade practice. Additionally, to not sought quick compromises for quick resolutions to tariffs and other issues.
Jekanowski also said he thinks that the uncertainty we see with China is the new normal. Also, for the next year or two, the usual scenario with China is similar to last years.’
In addition to that, the U.S is relatively early in the trade war.
To agree to reduce trade barriers, U.S. President Donald Trump has sought to pressure China. Through a policy of increasing tariffs on Chinese products. On Tuesday, Trump accused China of the theft of trade secrets “on a grand scale.” He also said China was taking advantage of World Trade Organization rules.
Moreover, Trump said a deal to end the nearly 15-month trade war with China could happen sooner than people think. Next month will be the restart of high-level trade talks.
With the drop in demand from China, U.S soybean stockpiles are at record highs. Sino provided domestic soy-meal plants with ample supply of beans to crush. Contrarily, a resolution of the trade war would drive more grains back into export channels, so plants might be reluctant to invest.
Furthermore, Jekanowski said that right now, he doesn’t expect to see significant increases in soybean crushing. They are not factoring into projections for increased crushing capacity, instead of record crushing capacity.
U.S Sanctions on Chinese Firms
The U.S imposed new sanctions on several Chinese entities for engaging in transporting Iranian oil. The issue is a violation of Washington’s barrier of the Islamic Republic of Iran.
Secretary of State, Mike Pompeo said in a press release that the move is part of the United States’ campaign. The campaign is about the maximum economic pressure against the Iranian regime, also, to those who enable Iran’s destabilizing behavior.
Besides, the U.S is imposing sanctions on some Chinese firms for knowledge of sanctionable conduct contrary to U.S sanctions.
According to Reuters, a press conference happened on the sideline of the United Nations General Assembly in New York. Moreover, Pompeo said the meeting, calling out China and all nations to let them know that they will sanction every violation.
After the September 14 drone attacks of oil facilities in Saudi Arabia, the latest developments came nearly two weeks. Iran is being held liable for the attack by the U.S and Saudi Arabia, but Yemeni Houthi Group claimed the liability. Although Tehran supported the Houthi Group, they denied involvement in the attack.
The United States and China lifted concerns about the risk of war in the Middle East. Also, amid worries of supply disruptions, it sent oil prices into surging. U.S President Trump announced plans to deploy U.S forces to the region, in response to the attacks in Saudi Arabia.
