BY COMFORT OGBONNA
China has agreed to purchase at least $17 billion worth of U.S. agricultural products annually in 2026, 2027, and 2028, according to a White House fact sheet released on Sunday. The commitment marks a significant step in efforts by the world’s two largest economies to stabilise trade relations after years of tariff disputes and declining agricultural exports.
The agreement was reached during recent meetings between U.S. President Donald Trump and Chinese President Xi Jinping, where both sides discussed ways to improve economic cooperation and reduce trade tensions that have weighed heavily on businesses and farmers in both countries.
The White House noted that the $17 billion commitment is separate from soybean purchase agreements China made in October 2025, indicating that total agricultural imports from the United States could exceed current expectations if additional deals are included.
Trade between the two countries’ agricultural sectors has suffered sharply in recent years following multiple rounds of retaliatory tariffs that disrupted long-standing supply chains and reduced exports. According to data from the U.S. Department of Agriculture, American agricultural exports to China fell 65.7% year-on-year to $8.4 billion in 2025 as tariffs and trade restrictions slowed demand.
China has also steadily reduced its dependence on American farm products since Trump’s first administration. In 2016, the United States supplied around 41% of China’s soybean imports, but by 2024 that figure had dropped to roughly 20% as China diversified its supply sources and increased purchases from countries such as Brazil and Argentina.
The renewed purchasing commitment is expected to provide relief for American farmers and agricultural exporters who have faced declining overseas demand and increased competition in global markets. Analysts say stronger Chinese demand for soybeans, corn, wheat, beef, and poultry could help stabilise prices and improve export revenues across the U.S. farming sector.
As part of the broader agreement, China also pledged to cooperate with U.S. regulators to remove suspensions affecting American beef facilities and resume poultry imports from U.S. states considered free of avian influenza outbreaks. The move could reopen important export channels that had been restricted due to health and safety concerns.
The White House further confirmed that both nations plan to establish a U.S.-China Board of Trade and a U.S.-China Board of Investment. The new bodies are intended to improve communication between the two countries, address concerns over market access, and create frameworks for resolving trade disputes more efficiently.
Chinese Foreign Minister Wang Yi previously stated that the boards would help expand bilateral trade under a reciprocal tariff-reduction framework, suggesting both governments are exploring ways to ease trade barriers while encouraging greater economic cooperation.
Economists believe the latest agreements could signal a broader attempt by Washington and Beijing to repair economic ties after years of political and trade-related friction. However, analysts also caution that long-term success will depend on whether both sides follow through on their commitments and maintain stable trade policies over the coming years.
The agricultural sector remains one of the most important areas in the U.S.-China economic relationship, with American farmers relying heavily on Chinese demand and China continuing to seek reliable food imports to support its massive population and food security goals.
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