China has halted purchases of American pork and soybeans, apparently in retaliation for the Trump administration’s actions against Hong Kong, CNBC reports.
Shipments of pork and soybeans to state-owned Chinese companies were stopped after the Chinese government told them not to follow through on the purchases, according to CNBC. Corn, cotton and other U.S. farm commodities are also apparently on hold.
The Chinese are retaliating for U.S. action in determining that Hong Kong is no longer independent enough of mainland China to warrant special treatment in trade and other matters. Under a 1992 law, U.S. trade with Hong Kong is less restricted and expensive than trade with mainland China – but only until the U.S. State Department determines that China is no longer allowing Hong Kong a significant degree of autonomy. U.S. Secretary of State Mike Pompeo took that step in late May, apparently in response to crackdowns by China that included refusing to allow Hong Kong residents to commemorate the Tiananmen Square massacre of 1989.
CNBC’s sources said China could expand its ban to other American farm exports, depending on the Trump administration’s reaction. The diplomatic hostilities have threatened the trade deal, signed Jan. 15, that obligates China to buy an additional $32 billion of pork, soybeans, wheat and other goods over the next two years.
