Bloomberg: China Asks State-Owned Enterprises to Suspend U.S. Ag Imports

Posted on 08/05/2019 5:53 AM

China’s currency plummets below important level for first time in more than a decade


U.S./China trade war developments continue to surface, with a Chinese official disputing U.S. contentions that China has not purchased U.S. soybeans.

 

     The Chinese government has asked its state-owned enterprises to suspend imports of U.S. ag products after President Donald Trump ratcheted up trade tensions with the Asian nation last week, people familiar with the situation told Bloomberg. China’s state-run agricultural firms have now stopped buying American farm goods, and are waiting to see how trade talks progress, the people said, declining to be identified. China’s commerce ministry didn’t respond to a fax seeking comment.

     Meanwhile, China’s renminbi crossed the psychologically important level of 7 to the U.S. dollar for the first time in more than a decade. Some note that may indicate a growing desire by Beijing to find ways to retaliate against President Trump and his trade war. The last time China’s currency was this weak was in 2008, during the financial crisis.

U.S. officials have long suggested that Beijing manipulates the currency to help its exporters. Some traders think it could start a currency war

 

     The trade war between Washington and Beijing has vaulted Mexico over China as America’s biggest trading partner.

 


 

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