China Freezing Commodity Purchases
Knowledgeable sources within China suggest that a ban has been imposed on brokers affiliated to the Government, enjoining them from placing orders for U.S. agricultural commodities. Observers suggest that this action is in retribution for the mild response by the U.S. following passage of a law by the National Assembly to restrict protests in Hong Kong. China is sensitive over relations with Hong Kong regarded as an internal matter.
It is questioned whether the ban will only be temporary, without causing inconvenience to China at present. Their action may be to establish a negotiating point with the U.S.
If rhetoric intensifies and if agreed quantities of commodities are not ordered, the Administration may revoke the Phase-One Trade Agreement, re-impose tariffs and reactivate a trade war that will be to the detriment of both nations.