bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Reuters

China has launched an anti-dumping and anti-subsidy investigation into imports of sorghum from the United States, the Ministry of Commerce said on Sunday, less than a fortnight after US President Donald Trump slapped steep tariffs on imports of solar panels and washing machines.
Beijing’s action is expected to immediately hit demand for the upcoming US sorghum crop, exports of which are largely used to feed China’s huge livestock sector, and send shivers through the entire US farm sector.
China is the top buyer of US sorghum as well as soybeans, the United States’ most valuable export to the world’s No 2 economy.

“I personally believe this is China’s response to Trump’s action on washing machines,” said Li Qiang, chief analyst at agriculture consultancy Shanghai JC Intelligence.
“If he takes any further measures, they will consider soybeans,” he added.
Expect confrontation as ‘old trade warrior’ Robert Lighthizer takes on China, observers say
The US shipped 4.76 million tonnes of sorghum to China in 2017, the bulk of China’s roughly 5 million tonnes of imports of the grain that year, and worth around US$1.1 billion, according to Chinese customs data.
That makes it almost twice as valuable as exports of Chinese aluminium alloy sheet to the US, also subject to recent trade action by Washington, which is being seen as another possible trigger for Beijing’s move.

Like the US aluminium probe, China’s commerce ministry investigation into sorghum was self-initiated.
The ministry said it had initiated the investigation because the local industry included a large number of small growers who were unable to prepare the necessary documentation.
Preliminary evidence and information found that imported sorghum from the US had been exported at a lower than normal value, it said, damaging local producers.
The trade action comes a year after Beijing slapped hefty anti-dumping and anti-subsidy duties on imports of distillers dried grains (DDGS) from the US, another product used as a feed ingredient, although it recently reduced VAT on DDGS imports.
Five sparks that could ignite a trade war between China and the US
Exports of US soybeans to China are also under pressure from stiff competition from rival exporter Brazil, with export sales hitting a seven-month low last week.
The investigation into sorghum dumping will be carried out for the period from November 1, 2016 until October 31, 2017, while an investigation of industrial injury will be from January 1, 2013 until October 31, 2017, the commerce ministry statement said.
The investigation should be complete by February 4 next year, it said, but could be extended until August 4, 2019.


Chinese drone maker DJI fights to shake off ‘military’ tag

South China Sea: Beijing submits Scarborough Shoal baseline documents to UN

US blasts China’s export ban on key minerals, vows ‘necessary steps’

US tech blind spot risks harming the country’s competitiveness

US-China relations

China launches anti-dumping probe into US sorghum imports as trade tensions rise

The investigation is expected to hit demand for the upcoming US sorghum crop, exports of which are largely used to feed China’s huge livestock sector. Photo: Alamy

FILE PHOTO: Employees work at the Qinghai Guoxin Aluminium Industry Incorporated Company workshop in Xining, Qinghai province August 20, 2010. REUTERS/Petar Kujundzic/File Photo

An employee holds a wicker scoop while preparing sorghum for fermentation at the Kweichow Moutai Co. distillery in the town of Maotai in Renhuai, Guizhou province, China, on Thursday, Dec. 14, 2017. Moutai baijiu's fiery flavor and potential to appreciate in price is driving blistering demand. That in turn has pushed its market value to more than $145 billion, well past British whisky giant Diageo Plc. Photographer: Qilai Shen/Bloomberg

News

China

Diplomacy

Economy

China Economy

Beijing’s investigation comes after US imposed tariffs on imports of solar panels and washing machines


Trade