As China-US trade talks resumed in Washington, China said yesterday it is dropping anti-dumping and anti-subsidy investigations into imported US sorghum, saying it is not in the public interest.

The Commerce Ministry said it was ending the anti-dumping probe because it would have raised costs for consumers.

The announcement was a possible sign Beijing is willing to make a deal with Washington amid talks between senior US and Chinese officials aimed at averting a trade war between the world’s two biggest economies.

China started investigating US sorghum in February after finding that large volumes and falling prices hurt Chinese producers. Preliminary anti-dumping tariffs of 178.6 per cent on the crop, which is used primarily for animal feed took effect on April 18.

In the course of its investigation, the ministry concluded that, “Anti-dumping and countervailing measures against imported sorghum originating in the United States would affect the cost of living of a majority of consumers and would not be in the public interest,” according to a notice posted on its website.

It said it had received many reports that the investigation would result in higher costs for the livestock industry.

The probe had also sparked fears among American farmers that they would lose their largest export market for the crop.

President Donald Trump’s administration has proposed tariffs on up to USD150 billion in Chinese products to punish Beijing for requiring US companies to turn over technology in exchange for access to China’s market. China has responded by targetting USD50 billion in US imports. Neither country has yet imposed tariffs.

Trump met on Thursday with Chinese Vice Premier Liu He, the leader of China’s delegation for the negotiations in Washington. Trump had told reporters earlier that he had doubts about the potential for an agreement. Treasury Secretary Steven Mnuchin is leading the talks with Chinese officials.