Archive for ‘agricultural products’

20/12/2019

Uganda asks China to buy African agricultural products to cut trade deficit

  • President Yoweri Museveni tells Chinese diplomat Yang Jiechi trade between African nations is unsustainable
  • China is the continent’s largest trading partner and lender, but imports mostly its oil and minerals
Africa has a surplus of agricultural products, Uganda’s leader says. Photo: Shutterstock
Africa has a surplus of agricultural products, Uganda’s leader says. Photo: Shutterstock
African countries want China to open up its markets to the continent’s agricultural products, Uganda’s President Yoweri Museveni told top Chinese diplomat Yang Jiechi after Beijing vowed to boost agricultural trade with the United States.
In a meeting with Yang in Uganda, Museveni said an increasing number of African
 countries wanted to sell to the lucrative Chinese market.
He said Africa had a surplus of agricultural products despite exporting to Europe and the US, partly because trade between African countries remained low.
“Africa’s 54 countries have come together through market integration in blocs such as Comesa [Common Market for Eastern and Southern Africa] that are not sustainable,” Museveni said. “The surplus of production needs another intercontinental market and an external market like China to come in.”

China is Africa’s largest trading partner, having surpassed the US in 2009. Africa’s trade with China was worth US$204 billion last year, according to figures from China’s Ministry of Commerce.

China is also the continent’s largest lender, having advanced more than US$143 billion between 2000 and 2017 to African countries for building motorways, power dams and railways, according to figures from the China Africa Research Initiative at the Johns Hopkins School of Advanced International Studies in Washington.
Museveni said China was interested in importing some aquatic products from Uganda, such as the Nile perch fish, which he said had high demand globally.
China pledges another US$60b to Africa as leaders meet in Beijing
4 Sep 2018

With China exporting far more to the continent than it imports from it, African nations are aiming to restructure the trading relationship to narrow their trade deficit by working out what Chinese consumers want and how to get it to them.

China’s imports of African goods are dominated by natural resources such as crude oil, copper, cobalt, iron ore, diamonds, gold and titanium, which it buys to meet its industrial and manufacturing needs. In return, Africa imports machinery, electronics and manufactured consumer goods.

The call from Museveni came after China and the US reached an interim deal to resolve aspects of their protracted trade war. US Trade Representative Robert Lighthizer has said that, under the deal, China had agreed to buy US$80 billion in American agricultural products over two years.
China has not confirmed the figure, but the deal is being watched closely by China’s other trading partners. Since the dispute with the US began in July last year, Beijing has diversified its agricultural product suppliers to include Argentina, Australia, Brazil, Germany, New Zealand and Spain.
China’s agricultural trade with Africa increased from US$650 million in 2000 to US$6.92 billion in 2018, Chinese Minister of Agriculture Han Changfu said this month. Han said he hoped that the figure would reach US$10 billion in the next decade.

Museveni said in the meeting with Yang that Beijing had “supported the continent’s prosperity through trade”, and that the memorandum of understanding he had signed last year with Chinese President Xi Jinping had “intensified the relationship” between their countries. A pipeline being constructed to Tanzania, to connect Uganda’s oil fields to the Indian Ocean, is being funded partly by Chinese investment, along with new industrial parks.

Yang said China would work with Uganda to implement the agreements reached by their respective heads of state and the outcomes of the Beijing Summit of the Forum on China-Africa Cooperation.

Beijing set to pledge further billions to Africa despite lending fears 2 Sep 2018

He said China would help Uganda to grow its economy, increase trade between the two countries, and build industrial parks and infrastructure. Beijing would continue to fund projects through the Belt and Road Initiative, its transcontinental infrastructure investment strategy, and through Uganda’s development plan Uganda Vision 2040, without providing details.
After Uganda, Yang will continue his African tour by visiting Congo-Brazzaville. The tiny oil-dependent central African nation recently fell into debt distress when global oil prices dropped, forcing Beijing to restructure its loans to unlock a bailout by the International Monetary Fund.
Xi denies China is spending money on African ‘vanity projects’
3 Sep 2018

Yang will then visit the West African nation of Senegal, where Beijing is funding large infrastructure projects.

Several other leading Chinese diplomats have made trips to Africa this year, including Foreign Minister Wang Yi, who visited South Africa in October. Last week, Ji Bingxuan, vice-chairman of the Standing Committee of the National People’s Congress – the permanent body of China’s legislature – led a group of officials visiting Congo-Brazzaville.

Source: SCMP

11/04/2019

U.S., China agree to establish trade deal enforcement offices – Mnuchin

WASHINGTON (Reuters) – The United States and China have largely agreed on a mechanism to police any trade agreement they reach, including establishing new “enforcement offices,” U.S. Treasury Secretary Steven Mnuchin said on Wednesday.

Mnuchin, speaking on CNBC television, said that progress continues to be made in the talks, including a “productive” call with China’s Vice Premier Liu He on Tuesday night. The discussions would be resumed early on Thursday, Washington time, he added.

“We’ve pretty much agreed on an enforcement mechanism, we’ve agreed that both sides will establish enforcement offices that will deal with the ongoing matters,” Mnuchin said, adding that there were still important issues for the countries to address.

Mnuchin declined to comment on when or if U.S. tariffs on $250 billion worth of Chinese goods would be removed. Although President Donald Trump said recently that a deal could be ready around the end of April, Mnuchin declined to put a timeframe on the negotiations, adding that Trump was focused on getting the “right deal.”

“As soon as we’re ready and we have this done, he’s ready and willing to meet with President Xi (Jinping) and it’s important for the two leaders to meet and we’re hopeful we can do this quickly, but we’re not going to set an arbitrary deadline,” Mnuchin added.

The United States is demanding that China implement significant reforms to curb the theft of U.S. intellectual property and end forced transfers of technology from American companies to Chinese firms.

Washington also wants Beijing to curb industrial subsidies, open its markets more widely to U.S. firms and vastly increase purchases of American agricultural, energy and manufactured goods.

The Chinese commerce ministry on Thursday confirmed that senior trade negotiators from both countries discussed the remaining issues in a phone call following the last round of talks in Washington.

“In the next step, both trade teams will keep in close communication, and work at full speed via all sorts of effective channels to proceed with negotiations,” Gao Feng, the ministry’s spokesman told reporters in a regular briefing in Beijing.

Mnuchin did not address whether the enforcement structure would allow the United States a unilateral right to reimpose tariffs without retaliation if China fails to follow through on its commitments.

People familiar with the discussions have said that U.S. negotiators are seeking that right, but that China is reluctant to agree to such a concession. Alternatively, the United States may seek to keep tariffs in place, only removing them when China meets certain benchmarks in implementing its reforms.

Mnuchin said he and U.S. Trade Representative Robert Lighthizer, who is leading the negotiations, are focused on “execution” of drafting the documents in the trade agreement.
The two sides are working on broad agreements covering six areas: forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture and non-tariff barriers to trade, according to two sources familiar with the progress of the talks.
“Some of the chapters are close to finished, some of the chapters still have technical issues,” Mnuchin said.
Source: Reuters
03/03/2019

China Focus: Industrial upgrade moves fast in Xinjiang

URUMQI, March 2 (Xinhua) — Farmers at a small village in western Xinjiang hardly had any days off this winter. Production at a walnut processing factory is going full throttle to meet demand.

Yusup Tursun and his wife are walnut farmers in Kupchi Village in Yecheng County on the edge of the Taklimakan Desert. The couple has been hired by a new walnut processing facility in the village, with the husband a quality inspector and his wife working part-time cracking nuts.

As a main base for walnut production, Yecheng has over 38,000 hectares of high-quality thin-shell walnut groves.

“It used to be quite difficult to sell the walnuts. The factories, with so many products, have made it easier for the sales,” Yusup said.

Seven companies make products from the nuts — walnut milk, walnut candies and edible oil. The shells are made into coloring agent and pollutant-absorbing carbon.

Diversity in the walnut products pushed the industry output to a new high of 2 billion yuan (about 299 million U.S. dollars). Three in every five people work in the walnut industry in Yecheng, where 550,000 people live.

Across Xinjiang, processing facilities are established to add value to agricultural products. Transport and logistical services are improved to boost the sales of Xinjiang’s signature agricultural products such as Hami melons, Korla pears and Turpan grapes.

UP THE VALUE CHAIN

Xinjiang is also moving up the value chain in two of its traditional industries — cotton and coal.

As one of the main cotton production bases in China, Xinjiang holds sway in the textile industry. By making full use of its cotton resources and geographical advantages as a portal for opening up, the region no longer sees itself as just a production base for raw materials. Starting from 2014, China’s leading garment and apparel makers including Ruyi Group, HoDo Group, and Huafu Fashion Co. Ltd invested in the region and built factories.

These factories have produced added benefits and created jobs for the local people. Xinjiang produces 1.5 million tons of yarn and over 40 million ready-made garments every year. More than 400,000 people work in the industry.

In the eastern part of the coal-rich Junggar Basin, workers have found that the snow is cleaner than before. The Zhundong Economic Technological Development Park, about 200 km west of Urumqi, is home to China’s largest coal field.

A stringent environmental requirement is applied to the park, said Ren Jianpin, director of the management committee of the park. Coal enterprises are required to control coal dust, install equipment to recycle water and coal slags are processed into construction materials, he said.

The park is focused on boosting high-end industries in aluminum and silicon materials, which generate more value and have less impact on the environment, he said.

GOING HI-TECH

Last year, a large-scale bio-based plant went into operation in Usu City to turn corn into nylon. The Cathay Industrial Biotech, a Shanghai-based biotech company, is the investor.

Nylon is usually made from petroleum, and the use of crops such as corn and wheat to make recyclable and environment-friendly nylon has promising business prospects, said Wang Hongbo, vice general manager of the company’s Usu branch.

The Usu branch will have an annual output of 100,000 tons of bio-based polyamide, and it is expected to boost the development of downstream industries in the future, he said.

The oil-rich city of Karamay has also received a hi-tech boost as cloud computing firms eye the dry and cold weather in the area. Karamay is home to many key state-level projects and IT-industry leaders, including a global cloud service data center for Huawei, data centers for the China National Petroleum Corp. (CNPC) and China Mobile.

Xinjiang is making new breakthroughs in precision machining, new materials, manufacturing and textiles.

Data from the regional statistics bureau show that the value added of the hi-tech manufacturing in Xinjiang rose by 32.1 percent year-on-year in 2018.

FURTHER OPENING UP

As a core area on the Silk Road Economic Belt, Xinjiang has maintained solid growth momentum in foreign trade. Foreign trade volume between Xinjiang and 36 countries and regions along the Belt and Road (B&R) totaled about 291.5 billion yuan (43.5 billion U.S. dollars) in 2018, up 13.5 percent year on year.

Economic observers say that there is still much room for Xinjiang to scale up its processing trade to raise the level of imports and exports.

Xinjiang will further develop an export-oriented economy in 2019 and participate in economic exchanges with neighboring countries, according to the regional government’s work report released in January.

Source: Xinhua

02/03/2019

Trump asks China to lift tariffs on U.S. farm products

WASHINGTON (Reuters) – U.S. President Donald Trump said he had asked China to immediately remove all tariffs on U.S. agricultural products because trade talks were progressing well.

He also delayed plans to impose 25 percent tariffs on Chinese goods on Friday, as previously scheduled.
“I have asked China to immediately remove all Tariffs on our agricultural products (including beef, pork, etc.) based on the fact that we are moving along nicely with Trade discussions,” Trump said on Twitter, pointing out that he had not raised tariffs on Chinese goods to 25 percent from 10 percent on March 1 as planned.
“This is very important for our great farmers – and me!” Trump said.
Farmers are a key constituency for Trump’s Republican Party, and the U.S. president’s trade war with China has had a heavy impact on them. Beijing imposed tariffs last year on imports of soybeans, grain sorghum, pork and other items, slashing shipments of American farm products to China.
U.S. Agriculture Secretary Sonny Perdue said this week that U.S. trade negotiators had asked China to reduce tariffs on U.S. ethanol, but it was not immediately clear whether Beijing was willing to oblige.
Trump’s post on Twitter came several hours after the U.S. Trade Representative’s office said that it would delay the scheduled hike in tariffs on $200 billion worth of Chinese goods.

The notice, due to be published in the Federal Register next Tuesday, says it is “no longer appropriate” to raise the rates because of progress in negotiations since December 2018. The tariff would remain “at 10 percent until further notice.”

In a statement on Saturday, China said it welcomed the delay.

Speaking at a separate briefing in Beijing, a Chinese government official said both countries were working on the next steps, though he gave no details.

“China and the United States reaching a mutually-beneficial, win-win agreement as soon as possible is not only good for the two countries, but is also good news for the world economy,” said Guo Weimin, spokesman for the high profile but largely ceremonial advisory body to China’s parliament.

A tariff increase to 25 percent from 10 percent was initially scheduled for Jan. 1, but after productive conversations with Chinese President Xi Jinping, the Trump administration issued a 90-day extension of that deadline.

Trump had said on Sunday he would again delay the increase because of progress in the talks.

Source: Reuters

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