U.S. Treasury Secretary Scott Bessent announced China has agreed to make “substantial” purchases of U.S. soybeans after meetings with Chinese Vice Premier He Lifeng in Malaysia. This signals a possible easing of trade tensions before a planned meeting between Presidents Trump and Xi Jinping.

The talks yielded an initial consensus on several bilateral issues, including agriculture, according to China’s Ministry of Commerce. If the pledge to increase soybean purchases is confirmed by Beijing, it could offer relief to U.S. farmers who have faced financial strain since China halted purchases amid trade disputes. Beijing has long used soybean imports as leverage in negotiations with Washington.

China’s crushers have already secured enough soybeans to meet demand through this year and part of next. However, U.S. Trade Representative Jamieson Greer said China still needs American supplies for December and January.

American Soybean Association President Caleb Ragland welcomed the announcement, calling it a “positive step.” He expressed hope for a trade deal that benefits farmers.

Increased U.S. imports could depress China’s domestic soymeal prices, adding pressure on processors. In the longer term, China is expected to continue diversifying its supply chain by deepening partnerships with Brazil and boosting domestic production to avoid dependence on the U.S. for soybeans.

Read more here on U.S. Treasury Secretary Scott Bessent’s announcement that China plans to buy U.S. soybeans.