Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that China has been importing a massive amount of U.S. pork although China is charging punishing tariffs on pork originated from the United States. Highly infectious swine plague is sweeping across China, putting heavy damage on the pork market and industry in China. According to data from the U.S. Department of Agriculture, very recently, Chinese entities placed the largest order for U.S. pork since the beginning of the trade war. The active purchasing moves gave the observers the impression that the Chinese pork market is seeing a significant shortage. This may actually ease the tension between China and the U.S. that the trade war introduced. China is currently charging a 62 percent tariff against U.S. pork. For the week of November 22, purchases of 9,384 tons of 2019 U.S. pork originated from China. This represents a 72 percent share of all U.S. pork export deals during that week. U.S. pork futures increased by four percent.
Source: Lianhe Zaobao, November 30, 2018