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Analyst warns China could sidestep commitments in anticipated trade pact

There’s concern China may not follow through on certain aspects of an anticipated trade deal with the U.S.

Michael Cordonnier with Soybean and Corn Advisor says during the first Trump administration, the Chinese did not fulfill its commitments as part of the Phase One agreement.

“And between then and now, which is six years later, Brazil is producing 46, 47 million tons more of soybeans. So with the first Trump administration (trade war), China said ‘we’ve got to diversify our soybean sourcing.”

He tells Brownfield China looked to South America and hasn’t looked back.

“And like I said, Brazil now has almost 50 million tons more of soybean production than six years ago. And they’re going to keep expanding in South America, and China is going to keep looking to South America for their soybeans.”

President Trump and Chinese President Xi are scheduled to meet in South Korea Thursday.