China Eases Trade Tensions with New U.S. Import Moves

In a significant move towards easing trade tensions, China announced it will restore soybean import licenses for three American firms and end its suspension on U.S. log imports. This decision is set to take effect from November 10, according to the Chinese customs authority.

Previously, the licenses for farmer-owned cooperative CHS, global grains exporter Louis Dreyfus Company Grains Merchandising, and export grain terminal operator EGT were halted in March amid escalating trade frictions. The import restrictions on U.S. logs were a retaliatory measure following an order by President Donald Trump to investigate U.S. lumber imports.

Investor sentiment improved after a recent meeting between Trump and Chinese leader Xi Jinping in South Korea, which reduced fears that the world's two largest economies might abandon efforts to resolve their trade disputes. Although Beijing lifted tariffs on some U.S. farm goods, a 10% tariff on all U.S. imports remains, keeping traders cautious about a full recovery in trade flows.