China’s JD.com commits to buy RM 8.4b US goods

By BLOOMBERG

HONG KONG • JD.com Inc will buy US$2 billion (RM8.44 billion) of US goods, more than half of which is beef and pork, in a deal that coincides with US President Donald Trump’s visit to China.

JD.com, China’s secondlargest online mall, will buy more than US$1.2 billion of beef from the Montana Stock Growers Association (MSGA) 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 US goods across a wide range of categories, it said.

US companies and China announced deals worth about US$9 billion yesterday, 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 US 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 US,” JD.com CEO Richard Liu said.

The procurement agreement is for an initial three years, with a minimum commitment of US$200 million in beef to be imported from Cross Four Ranch and MSGA members at fair market value.