China must take restrictive measures against soy: Global Times

A Chinese national newspaper that has strong links to the ruling Communist Party has called for "strong restrictive measures" to be taken against imported soybeans in the latest salvo of a growing trade spat between China and the US.

In an editorial published late Tuesday, the Global Times newspaper said US suppliers were dumping soybeans into China as "huge subsidies for soybean farmers have garnered an unfair competitive advantage."

Restrictive measures "can reduce the adverse effects of imported soybeans on the Chinese market and provide a fair and sound environment for the sustainable development of the Chinese soybean industry," the paper said.

The editorial comes at a sensitive time for trade relations between the US, the biggest soybean producer in the world and the second biggest exporter, and China, which is the planet’s biggest consumer and importer.

The two biggest economies have become involved in a tit-for-tat trade dispute that has so far seen the US tax imports of Chinese washing machines and solar panels while slapping a tax on imports of aluminium and steel.

China, in retaliation, said it would open an investigation into sales of sorghum and has quietly told producers of soybean that the oilseed may be next.

The editorial chimes with China’s policy of promoting domestic agricultural and grain businesses as it tries to feed its growing population.

However, policy watchers and analysts are sceptical China will target soybeans as it will struggle to source beans from elsewhere.

China buys around two-thirds of all soybeans sold, while the US supplies more than one-third.

The US spends billions every year in subsidising crop insurance for farmers, although President Trump earlier this year said he wanted to cap the subsidy and limit eligibility to poorer farmers in an attempt to cut the USDA's budget by 15%.