U.S. Blacklists Chinese Tech Firms Ahead of Trade Talks
Recent torrent of soybean sales to China could be at risk when Chinese retaliate
U.S. Blacklists Chinese Technology Firms Ahead of Trade Talks
On Monday, the U.S. added 28 Chinese entities to an export blacklist citing their role in Beijing’s repression of Muslim minorities in northwest China.
This move occurs days before high-level trade talks are scheduled in Washington.
Chinese officials, who are already incensed over what Beijing sees as U.S. support for the pro-democracy movement in Hong Kong China, has said it will retaliate against the U.S.
Blacklisted companies include those who manufacture video-surveillance and facial-recognition technologies.
FBN’s Take On What It Means: We believe that this recent action by the U.S. to blacklist Chinese technology companies a week before trade talks is a potential risk. We believe that if China’s soybean purchases are a barometer for U.S./Chinese relations, the recent torrent of soybean sales to China could be at risk when the Chinese retaliate.
China Purchases Live Danish Hogs To Help Restock Hog Herd
C.P. Pokphand Co. (CP), China’s fifth largest commercial hog producer, recently had 900 Danish gilts and sows flown into the country.
CP’s CEO made comments in Reuters about his company’s plans to raise 10 million pigs a year by 2021, up from 4 million in 2019.
According to Chinese Customs, this purchase is China’s first import of live breeding stock since African swine fever (ASF) began decimating China's hog herd over a year ago.
High mortality rates temporarily reduced demand for breeding animals as farmers tried to contain the deadly and contagious disease.
With ASF estimated to have reduced the world's largest hog herd by more than 50%, Chinese producers are expanding by building new farms and restocking previously infected ones.
FBN’s Take On What It Means: Chinese demand for hog breeding genetics is not a surprise as record market hog prices provide an incentive to retain barrows and gilts. CP’s importing live animals is a signal that firms may have contained ASF and are ready to expand. This development can be a positive for the US soybean export program as herd rebuilding will increase the demand for soybean meal.
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