Goldman Sachs casts doubt on whether China can honor $40 billion in US farm purchases

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Goldman Sachs casts doubt on whether China can honor $40 billion in US farm purchases
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In 2017, China managed to buy around $27 billion worth of U.S. soft commodities and agricultural assets.

Washington wants China to raise farm puchases to at least $40 billion for this year and next.

The U.S. and China plan to sign the first draft of the trade pact on January 15 which will see tariffs eased and changes introduced to rules surrounding intellectual property and technology. Washington is also demanding that China buys between $40 billion and $50 billion worth of agricultural goods from the U.S. each year.

"There is still a lot of uncertainty about how you would achieve $40 or potentially even $50 billion of agricultural purchases," Currie said, before adding, "A lot of the people I talk to are really skeptical that you can really achieve that number."

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