Kudlow: China's spending spree sets the 'mood' for a deal
White House economic adviser Larry Kudlow on Thursday said China’s recent spending spree on soybeans could mean that trade talks are progressing.
“China's coming into the commodity markets, I'm told soybean prices have been bid up a bit,” he told FOX Business’ Stuart Varney. “This is a very, very good beginning we haven't seen this kind of thing.”
In recent days, China has been in the commodity markets buying a huge volume of soybeans. As a result, soybean imports in the U.S. have been increased by over 80 percent from last year, he said.
FILE - In this May 23, 2019, file photo, a farmer plants soybeans in a field in Springfield, Neb. China's government says importers have agreed to buy American soybeans and pork. The announcement comes as the two sides make conciliatory gestures ahea
In addition, China is also looking to buy large amounts of pork to “cover their domestic problems,” he said.
On Wednesday, President Trump told FOX Business’ Kristina Partsinevelos that China’s ready to make a deal because their economy was weakening.
"They want to make a deal,” Trump told Partsinevelos during a press conference at the United Nations. “And you know why they want to make a deal? Because they're losing their jobs and because their supply chain is going to hell, and companies are moving out of China, and they're moving to lots of other places including the United States. And that's not good. That's far worse than they thought. And by the way, in the meantime, we're taking in billions and billions of dollars in tariffs. We’re taking in tremendous numbers in tariffs, and we're helping our farmers who got targeted now."
The next round of trade talks between U.S. Trade Representative Robert Lighthizer and China Vice Premier Liu He is scheduled to take place in October.
FOX Business’ Blair Shiff contributed to this report.