Corn Deal Survives Trade Spat; Growing U.S.-China Friction Could Affect Future Business

China just ordered a massive volume of U.S. corn in spite of growing trade friction between Washington and Beijing.

The English-language China Daily newspaper reported comments by officials Friday that show strains are taking their toll and might alter future trade flows.

China ranks as Tennessee's largest source of imports, shipping $16.4 billion worth of goods into the state last year, the U.S. Census Bureau says. Memphis' sprawling 58,000-employee logistics industry is thought to have handled much of the cargo.

China has relied on buyers abroad to help sustain its boom, but in September the pace of its global exports slowed, raising concerns that U.S. companies may begin buying more goods from other Asian nations.

"Chinese products lost their advantages in relatively low price because of the appreciation of the yuan. Therefore, some European and U.S. buyers will turn their eyes on to other emerging markets like Indonesia and Vietnam," Li Jian, an analyst at the Chinese Academy of International Trade and Economic Cooperation, told China Daily.

Concerns about U.S. buying patterns shifting away from China were intensified when the U.S. Senate this week jabbed China with charges of currency manipulation, raising the prospect of a trade war.

President Barack Obama's administration said Friday it will delay a decision on whether China is manipulating its currency to gain trade advantages until after a series of upcoming international meetings.

The extra time will allow top officials from both countries the opportunity to discuss the matter.

The currency report under law was scheduled to be released today , although this administration and previous administrations have often missed the deadline.

China Daily noted the White House has moved to distance itself from the Senate's measure.

In a speech this week to the American Chamber of Commerce in Shanghai, U.S. Ambassador Gary Locke announced a plan to lead five trade and investment missions to China's emerging cities over the next year to promote U.S. exports and attract investment to boost job opportunities.

"We simply cannot wait for the Commerce Department or the Energy Department and other governors and mayors to lead trade missions here to China. There's no reason why the embassy and the consulates here can't initiate these trade missions on our own," Locke said.

Despite Locke's efforts, China Daily noted officials remain wary of the U.S. Senate action.

Shen Danyang, spokesman for China's Ministry of Commerce, said the U.S. Senate has sent the "wrong signal by escalating trade protectionism" at a time when the global economy is facing serious challenges.

"With the intensifying internal crises in Europe and the U.S., competition will be fiercer in these regions," Shen said.

Most analysts in Asia, according to China Daily, doubt a trade war will break out with the United States. But they figure China could still adopt retaliatory measures.

China just made one of its biggest-ever purchases of corn on overseas markets, buying 900,000 metric tons of U.S. corn, a massive deal that analysts say will tend to bolster world grain prices.

The purchase comes as the Chinese export machine starts to slow.

Export growth rose 17.1 percent over a year earlier, compared to 24.5 percent growth in August, according to data released by China's General Administration of Customs. Imports rose 20.9 percent, down from 30.2 percent in the previous month. It is China's lowest growth rate in exports in seven months.

Growth in exports to Europe, China's biggest export market, slid to 9.8 percent from 22 percent a year earlier. Trade with the United States climbed 11.9 percent in September from a year earlier, with exports growing 11.6 percent and imports from America rising 12 percent.

Meanwhile, Taiwan is seeking to sign investment agreements with the United States and the European Union to head off competition from South Korea, which just completed a free-trade deal with the United States.

The New York Times, the Associated Press and Reuters contributed to this report.