China agrees to buy U.S. rice

China has agreed to buy U.S. rice. The South China Morning Post reported the news on December 28, 2018 under the title “Slow cooker: China gives final approval to imports of rice from the U.S. after inspection procedures put in place.” 


It's not clear how much China will buy, but the U.S. rice industry calls China the 800- pound gorilla for the industry, and a market barrier it's been trying to break for decades. The rice market is so big that China can devour the entire U.S. crop in about two weeks. 


This news – along with China’s resumption of buying some U.S. soybeans in December – is a heartening development in a thorny tit-for-tat war that placed tariffs on $200 billion of Chinese goods. The U.S. has agreed not to raise tariff levels if the two countries can agree on a fistful of issues by March 1. 


History is yet to be written on this tumultuous chapter. The 39th American president, Jimmy Carter, broke decades of enmity when he met with Chinese leader Deng Xiaoping on January 30, 1979. That’s a 40-year anniversary worth noting. 


Source:  AgriMarketing January 2, 2019 newsletter

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