China and US hail major soybean deal

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A huge soybean deal between China and the US was announced Wednesday from the US state of Iowa. China will buy 12.5 million tons of soybean from the state, worth nearly five billion US dollars.

CGTN’s Hendrik Sybrandy reported that this is China's second biggest soybean purchase ever from the US.

The deal is part of a 100-day trade plan between the two countries, which was agreed on during Chinese President Xi Jinping's meeting with his US counterpart Donald Trump in Mar-a-Lago in April.

The US's soybean pipeline to China is well-established. Some 36 percent of the soybeans China imports come from the US.

And the numbers are growing.

China depends on the oil seed to feed its pigs and chickens and help fuel the country’s booming fish farms. US farmers said their soybeans produce a better rate of weight gain in animals at a lower cost than other countries. They have been meeting the increased demand of Chinese consumers.

"China’s population continues to grow and as its economy improves, Chinese people have higher income levels, the demand for protein continues to increase," said James Miller from the US Soybean Export Council.

The signing ceremony of the soybean deal involved various US and Chinese companies, and also included agreements on beef and pork. It came at a time of occasional trade tensions between the two countries.

"China is Iowa’s fourth largest trading partner and because of exchanges like these, we expect that relationship to continue to grow in the future," said Debi Durham, Director of the Iowa Department of Economic.