By China has resumed soybean imports from five Brazilian companies previously suspended over phytosanitary concerns.
The decision coincides with Brazilian President Luiz Inácio Lula da Silva’s expected state visit, highlighting deepening trade cooperation between the two nations.
The reinstated exporters—Terra Roxa Comercio de Cereais, Olam Brasil, C.Vale Cooperativa Agroindustrial, Cargill Agricola S.A., and ADM Brasil—are now listed in China’s customs database, Reuters reported.
However, not all appear on the updated registration list, indicating that the approvals may still be transitional.
The timing reflects Beijing’s strategic ambition to diversify food supply chains and reduce reliance on US agricultural products.
The move aligns with China’s broader geopolitical effort to counterbalance US-led trade alliances while maintaining food security.
Brazil’s role in China’s soybean supply
Brazil has emerged as the world’s largest soybean producer and exporter, supplying over 70% of China’s soybean imports.
In 2024 alone, China imported a record 105.03 million metric tons of soybeans, with more than 74 million tons sourced from Brazil.
The trend is expected to accelerate in the second quarter, supported by a strong Brazilian harvest.
China, which purchases more than 60% of the world’s traded soybeans, relies on Brazil to meet domestic demand, particularly for its livestock and food processing industries.
The resumption of shipments from previously banned firms strengthens Brazil’s dominance in the Chinese market and further reduces the market share of American exporters.
The timing of China’s decision underscores warming diplomatic relations. President Lula’s anticipated visit is part of a broader strategy to enhance South-South cooperation and reduce Western trade dependencies.
Beijing’s move also illustrates a pragmatic approach to trade standards.
After the initial suspension, Brazil’s agriculture ministry submitted documentation addressing phytosanitary concerns raised by Chinese authorities.
While Chinese and Brazilian officials have yet to issue public statements, the reinstatement is likely to be viewed as a diplomatic success for Brazil.
US exporters face mounting pressure
The latest development deals another blow to American soybean exporters, who continue to lose ground in China amid ongoing trade tensions. Despite easing rhetoric between Washington and Beijing, agricultural trade remains strained.
With global agribusiness giants like Cargill and ADM active in both countries, the resumption of Brazilian exports is expected to impact international soybean logistics.
It could also drive further investment in South American infrastructure as Brazil consolidates its status as China’s preferred agricultural partner.
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