China purchases of soybeans are all taken care of, says Bessent

• Discussed purchases, will talk about board of trade
• We are trying to balance trade out
• US has a stronger position because of our trade deficit with China
• Will also discuss board of investments, that will cover non-strategic and non-sensitive areas where China can invest
• Think we’re going to see large Boeing orders
• Also talked about China buying more energy today
• Thinks China will do what it can on the Strait of Hormuz
• The reopening of the strait benefits China
• Believes that China will work behind the scenes to the best of their capabilities

On the headline remark, we’ve been here one too many a time. It has been an issue for more than a decade already. Anyone can still remember the Phase One trade deal? Well, that was pretty much a joke at the end of the day and I don’t see any reason why this won’t turn out to be the same.

China will surely offer up a couple of gestures of goodwill in stepping up agricultural purchases for a few months, before returning back to the status quo again. And in the case of soybeans, they’ll be looking back to Brazil again in no time surely.

Again, whatever that the two sides are discussing here are mainly for show. They need to tell the world that they have something to show for after the meeting this week. But come what may, it’s all just to maintain some sense of a cordial relationship for now after having seen things escalate last year due to the tariffs war.

This article was written by Justin Low at investinglive.com.