China retreats from U.S. sorghum probe amid global market havoc
China retreats from U.S. sorghum probe amid global market havoc. China dropped its anti-dumping probe into imports of U.S. sorghum on Friday, beating a hasty retreat from a dispute that wreaked chaos across the global grain market and raised concerns about rising costs and financial damage at home.
The move was seen as a goodwill concession as Chinese Vice Premier Liu He was in Washington for talks aimed at resolving trade tensions between the world’s two largest economies. Read more here.
China’s Commerce Ministry said in a statement the investigation into a critical ingredient for animal feed and liquor had revealed that anti-dumping and anti-subsidies penalties would inflate living costs for Chinese consumers.
The investigation launched in early February had quickly showed its top trading partner how much financial pain it could inflict on U.S. farmers, analysts said. Last month, Beijing also imposed hefty anti-dumping deposits on imports of the grain.
“China has taught a lesson to the United States and showed how it can hurt U.S. exports,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.