Chinese approval process for genetically modified crops is a sticking point in talks to end trade war with U.S.

"China's lengthy approval process for genetically modified crops remains a sticking point in talks to end the trade war between China and the United States, according to two sources with knowledge of the talks," Chris Prentice reports for Reuters. "Beijing has taken years to approve new strains of GM crops, which U.S. companies and farmers have complained stalls trade by restricting the sales of new products from companies such as DowDuPont Inc., Bayer AG, and Syngenta AG."

Relaxation of the approval process is among the demands that the Trump administration has made of China "if it wants to end trade disputes that have cost both countries billions of dollars and slowed the global economy," Prentice writes. Before the trade war, China bought 60 percent of U.S. soy exports.

The issue of genetically modified organisms "has been a source of tension between the two countries for years," Prentice notes. "China is the biggest buyer of U.S. soybeans, the bulk of which are genetically modified. If it does not approve new strains, then farmers in the United States cannot plant them because China may reject shipments that include them. Seed companies cannot fully commercialize sales of new strains without those approvals."

Prentice reports that there appeared to be progress on the issue in January, "when China approved a handful of GMO crops for import. They were the first in about 18 months. The move did not address the core U.S. concerns over delays to the process. . . . It is unclear what differences on the issue remain. The United States wants China to accelerate its approval process and make it more similar to Washington's. Beijing allows imports of GMO soybeans and corn for use in animal feed, even though it does not permit planting of them."