China to lift punitive tariffs on US soybeans and pork

China to lift punitive tariffs on US soybeans and pork in a trade war with Washington, a state-run news agency said on Friday, adding to the conciliation efforts of the two countries before the negotiations.

China will suspend tariff increases on soybeans, pork and other agricultural products, the Xinhua News Agency said, citing the firm's planning agency and the Ministry of Commerce. Beijing "helps domestic companies buy a certain amount of US agricultural products," she said, without giving further details.

The move follows Wednesday's decision by President Donald Trump to postpone the scheduled increase in tariffs on imports from China from October 1 to October 15.

Many hope the two countries will defuse their protracted dispute, which threatens global economic growth. However, there has been no sign of progress on the key issues raised by their trade and technology conflict.

Beijing's decision to restore access to low-cost US soybeans would also help Chinese pig farmers using soybeans as livestock feed. They are recovering from an outbreak of African swine fever that has led to soaring pork prices.

"China has a huge market and the prospects for importing high quality US agricultural products are vast," Xinhua said. "China hopes that the United States will honor its commitments, advance their commitments and create favorable conditions for bilateral agricultural cooperation. "

Last year, Beijing imposed 25% tariffs on US agricultural products in response to tariff increases by the Trump administration on Chinese products. Importers have been ordered to stop buying soybeans, the largest product exported by the United States to China. China has targeted agricultural products, affecting rural areas that supported Trump in the 2016 presidential election.

US Treasury Secretary Steven Mnuchin has called the postponement of Wednesday's tariff increases "a gesture of goodwill towards the Chinese."

Chinese negotiators are due to visit Washington in early October to meet with Mnuchin and US Trade Representative Robert Lighthizer, according to the Treasury Secretary. He added that US and Chinese middle-level officials would meet next week or the next week to prepare for the talks.

By delaying its tariff increase, Trump has hinted that the negotiations are progressing enough to avoid this increase indefinitely. Economists, however, believe that a final agreement is unlikely this year. Tariff increases on both sides for billions of dollars in merchandise disrupted the operations of farms and factories in both countries, which weighed on global economic growth.