China Focus

China is the world’s largest producer and consumer of field crops, particularly rice, wheat and corn.  China is a major importer of grain, cotton and oils and its demand and supply of field crops and field crop products has a significant impact on world commodity and food markets.






Growth areas for business and employment

  • Supply of field crop seeds

  • Introduction and development of new field crop varieties

  • Import of field crops, field crop products, by-products and ingredients

  • Supply of field crop farming machinery and technology

  • Supply of water-saving irrigation equipment and systems

  • Postharvest storage and handling equipment and technology

  • Supply of field crop processing equipment and technology

  • Feed manufactur

Grain consumption in China exceeded production during the past years and this trend is likely to continue.  Food security and grain self reliance is a top national concern in China and key commodities such as rice, wheat, corn, sugar and cotton are considered to have national security implications and their production, processing and marketing are strictly regulated by the government.  Maintaining an adequate reserve of field crop stocks such as rice, wheat, corn, barley sorghum, millet, oats, soybeans, potatoes, and pulses remains a top priority of the Chinese government.

With agricultural modernization, internationalization and accession to WTO, the Chinese field crop sector is gradually being liberalized.  However, the Chinese government is likely to continue to regulate the production and marketing of key crop commodities through government policy adjustments such as supports and pricing.

Agricultural tax will be abolished for the next 5 years starting 2005 and farmers will be paid directly based on planting area to help encourage farmers to produce field crops, and improve rural income and social stability.  However, the key determinant of production area will be commodity price and the price for many field crops have been increasing since 2003.

A number of GM rice, canola, corn and soybean varieties are being evaluated in China by the Ministry of Agriculture.  The acceptance of GM commodities in China will have wide implication for field crop production and trade in China as well as other agricultural countries.  The Chinese government is cautious about the introduction and production of GM crops in China and the recent negative report on GM crop trials in UK will have a significant negative impact on the acceptance of GM crops in China.





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