China said to agree to auto tariff cut as trade talks continue

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Chinese state-run firms China Grain Reserves Corp (中國儲蓄糧管理總公司) and China National Cereals, Oils and Foodstuffs Corp (中糧集團) bought the soybeans, one European trader said.

ING said the Huawei case made it progressively evident that the China-US exchange war is about the trading of innovation, and there were likewise reports the United States would discharge proof this week enumerating Chinese hacking and monetary undercover work.

President Donald Trump agreed December 1 to postpone more USA tariff hikes on Chinese imports for 90 days while the two sides negotiate over American complaints about Beijing's technology policy.

"The risk right now is to the downside still, even though we had this reversal", said Gordon Charlop, managing director at Rosenblatt Securities in NY.

The purchases will, however, provide a goodwill gesture before the next round of U.S.

The news also comes after reports that Beijing plans to drop its Made in China 2025 plan, a medium-term strategy for economic dominance.

China has agreed to reduce and remove tariffs on cars coming into China from the U.S. now the tariff is 40%.

Trump has imposed import taxes on $250 billion in Chinese products - 25 percent on $50 billion worth and 10 percent on the other $200 billion.

Ross told CNBC the moves by Beijing will "prove that President (Donald) Trump was right when he announced his summary of the talks" held recently with China's President Xi Jinping. But the world's top soybean importer has purchased little since Beijing slapped steep tariffs on USA shipments on July 6 in retaliation for duties on Chinese goods.

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They are the largest exporters of China-bound sport utility vehicles from the US and significant importers of luxury sedans into the USA, said Jeff Schuster, the president of global forecasting for LMC Automotive.

Traders said China made the first major purchase of US soybeans since Washington and Beijing agreed to a temporary trade truce this month.

He was obviously referring to a telephone conversation between China's Vice Premier Liu He and U.S. Treasury Secretary Steven Mnuchin, Trade Representative Robert Lighthizer on trade issues between the two countries. China's decision came amid a period of heightening tensions between the US and China over trade and intellectual property issues.

The companies did not immediately respond to requests for comment.

Citing industry sources, the USA soybean council said state-owned firms from China are stocking up their purchases in the product, and the shipments are expected to take place before March next year.

USA farmers stored soybeans after the fall harvest, instead of selling them to grain traders and processors, because of low prices and lack of alternative buyers.

BMW, which exports sport utility vehicles from the USA to China, rose as much as 3.3pc to €72.40 in Frankfurt.

China this year has relied on Argentina and top exporter Brazil for most of its soybeans used to feed the world's largest pig herd.