Last updated at: (Beijing Time) Thursday, February 19, 2004
China signs contracts to buy one million tons of US wheat
A Chinese wheat-purchasing delegation to the US has signed contracts with US grain suppliers to buy 1 million tons of wheat, and more contracts are likely when the delegation heads west to Chicago and Portland.
Feb. 18 is the third day of after the China wheat procurement delegation arrived in the United States. Till now they have signed in Washington with the US grain providers purchase contract worthy of one million tons. The delegation is expected to stay in the United States for four days and complete purchase plan of another one million tons.
The second stop of the delegation is Chicago, the largest center for grain businesses east United States, and their last stop is US western port city Portland.
Zhou Mingchen, chairman of the board of the China National Cereals Oils and Foodstuff Import & Export Corp., said: "If US wheat is competitive, we will try to buy more." Zhou, accompanied by several other officials, met with USDA representatives in Washington on Tuesday. He said he is particularly interested in US wheat from the Pacific Northwest.
The 11-member delegation's two main goals for the current US trip are to conclude shipping arrangements for wheat already contracted as well as look into possible new purchases. Zhou stressed that China will honor the contracts it has already made to buy US wheat.
Zhou said the team hopes to finalize contracts for the purchase of more than two million metric tons during the trip. But he said China will not and cannot depend on other countries to feed its people.
"China attaches great importance to agricultural development and increasing the income of farmers. It is inconceivable that a country of 1.3 billion people will rely on others to feed them," he said. "If China relies on itself, it will be a great contribution to the global economy and mankind. If China, with its 1.3 billion people has to rely on imports to feed its people, it will be a very great problem to the world.
"Don't misunderstand that what I said means China will close down the door," Zhou said.
China has so far contracted to buy 1.085 million metric tons of US wheat for delivery in 2003-04 and 910,000 tons in 2004-05, according to USDA data.
The purchase delegation is the fourth one China has sent to the United States. The former three have purchased from the United States planes, soybean and telecommunication equipment respectively. The wheat purchase delegation initially planned to visit the United States, but cancelled the trip since the United States declared to impose limitation against some of the textile products from China.