China Online Mall Pledges Billion Dollar Buy of US Beef & Pork
(Bloomberg) --
JD.com Inc. will buy $2 billion of U.S. goods, more than half of which is beef and pork, in a deal that coincides with President Donald Trump’s visit to China.
JD.com, China’s second-largest online mall, will buy more than $1.2 billion of beef from the Montana Stock Growers Association and pork from Smithfield Foods Inc. over the next three years, the company said in a statement released after a signing ceremony in Beijing. The agreement is part of a commitment to buy U.S. goods across a wide range of categories, it said.
U.S. companies and China announced deals worth about $9 billion on Wednesday, according to Commerce Secretary Wilbur Ross. Trump arrived in Beijing on the third leg of a five-nation Asia tour, accompanied by executives from some 40 companies seeking deals in sectors ranging from energy to aviation to financial services. While China has reopened its borders to U.S. beef imports, shipments remain low due to the limited supply that meets requirements. China is the world’s biggest pork producer, consumer and importer.
“China’s shoppers will rest assured knowing that they are able to purchase safe, high-quality meat products imported from the U.S.,” JD.com Chief Executive Officer Richard Liu said in the statement. The procurement agreement is for an initial three years, with a minimum commitment of $200 million in beef to be imported from Cross Four Ranch and MSGA members at fair market value, according to the statement.
Copyright 2017, Bloomberg News
