Page 174 - 2017 White Paper
P. 174
7 White Paper on the Business Environment in China
in this new landscape of Chinese agriculture, Erlend Ek, year plan, added more specific tasks and targets to be
an agriculture research manager for consulting firm, achieved by the year 2020. China aims to achieve“marked
China Policy, told VOA: “New opportunities are opening progress” in agricultural modernization by 2020. The
up because Chinese authorities are seeking partnerships country should strive to ensure food security, improve
with foreign companies in the field of agriculture the quality and efficiency of farm produce supply, and
technology” (Ibid.). enhance the sector’s international competitiveness by
2020, the plan said. It also targeted “moderate prosperity”
Plowing Towards Modernization – for rural residents, and “a beautiful countryside”. Priority
Implications for Foreign Investors for modern agriculture should be established in the
country’s eastern coastal developed regions, major cities’
In view of President Xi Jinping’s administration’s suburbs and state farms, according to the plan. The plan
drive towards innovation across industries, major policy specified tasks to “promote innovation, coordination,
activities announcedinthissectorindicatethatagriculture green development, opening up and farmers’ welfare”
is charting a significant and steadfast path in plowing its with fourteen key projects identified as vital to achieve
way towards modernization. This year, the State Council plan goals. These included projects to “cultivate high-
issued The National Agriculture Modernization Plan 2016- standard farmland, integrate various sub-industries
2020, issuing a strong push towards national agricultural and ensure farm produce quality”. The plan promised
modernization in alignment with the 13th Five-Year Plan that “fiscal and financial support will be given to the
(2016-20), wherein a proposal for the “professionalization agricultural sector” (Xinhua 2016a).
and modernization” of China’s agriculture industry was
a key focal point. While the CPC Central Committee and According to a report from China Briefing, by 2020,
State Council have made agriculture the main focus of the government aims to create over 53 million hectares
the annual Number One Central Document for thirteen of farmland with promises of investment invest in
consecutive years, the new plan serves as the policy technology and training for farmers. The awareness and
guiding document for China’s agricultural development attention given to enhancing the industry’s potential
for the next five years (Jin 2016). for foreign investment and the global markets though
is quite recent. On September 20 this year, the Ministry
According to Xinhua, a five-year blueprint released by of Agriculture signed a memorandum of understanding
the Ministry of Agriculture in September 2016 outlined with the China Council for the Promotion of International
a framework to “integrate technology into agriculture in Trade (CCPIT), signifying a strategy of seriously pursuing
the next five years to increase productivity and efficiency”. overseas agricultural investment and trade (Jin 2016).
The blueprint stated that the government intends to
“improve intelligent management in planting, cultivation As a strategic industry in China, certain sectors are
and machinery and the use of Internet of Things (IoT) will protected from foreign investment. For instance, foreign
cover 17% of the agriculture sector”. Ten pilot provinces investment in genetically modified crops is prohibited
are being planned to test the integration of information or restricted, China Briefing reports (Jin 2016). However,
technology with the agricultural industrial chain (Xinhua the China Briefing report continues, as along with other
2016b). industrializing nations, China will account for two-thirds
of the global market for new agricultural machinery over
To finance this ambitious program, Xinhua also the next three years, opportunities for foreign investment
announced, as reported by Reuters, the Agricultural still abound in agricultural equipment and other
Development Bank of China has agreed to loan at least permitted agricultural products. With the government’s
3 trillion yuan (US$450 billion) by 2020. The bank, which support, farmers continue to experiment with technology,
aligns its lending with government policy, signed an using drones to distribute pesticides and tractors to
agreement with the Ministry to protect national food harvest crops; other activities such as coffee cultivation
security, support the sector doing business overseas and and fertilizer production are encouraged. Consumer
develop China’s seed industry (Carsten 2016). preferences for foreign and imported products also
remain strong. For foreign investors, China’s long-term
A month later, Xinhua reports, the State Council trend of subsidizing the development and modernization
followed through on making the Ministry of Agriculture’s of its agricultural industry promises fresh opportunities in
modernization blueprint official and, in its released five- the coming years (Ibid.).
174
in this new landscape of Chinese agriculture, Erlend Ek, year plan, added more specific tasks and targets to be
an agriculture research manager for consulting firm, achieved by the year 2020. China aims to achieve“marked
China Policy, told VOA: “New opportunities are opening progress” in agricultural modernization by 2020. The
up because Chinese authorities are seeking partnerships country should strive to ensure food security, improve
with foreign companies in the field of agriculture the quality and efficiency of farm produce supply, and
technology” (Ibid.). enhance the sector’s international competitiveness by
2020, the plan said. It also targeted “moderate prosperity”
Plowing Towards Modernization – for rural residents, and “a beautiful countryside”. Priority
Implications for Foreign Investors for modern agriculture should be established in the
country’s eastern coastal developed regions, major cities’
In view of President Xi Jinping’s administration’s suburbs and state farms, according to the plan. The plan
drive towards innovation across industries, major policy specified tasks to “promote innovation, coordination,
activities announcedinthissectorindicatethatagriculture green development, opening up and farmers’ welfare”
is charting a significant and steadfast path in plowing its with fourteen key projects identified as vital to achieve
way towards modernization. This year, the State Council plan goals. These included projects to “cultivate high-
issued The National Agriculture Modernization Plan 2016- standard farmland, integrate various sub-industries
2020, issuing a strong push towards national agricultural and ensure farm produce quality”. The plan promised
modernization in alignment with the 13th Five-Year Plan that “fiscal and financial support will be given to the
(2016-20), wherein a proposal for the “professionalization agricultural sector” (Xinhua 2016a).
and modernization” of China’s agriculture industry was
a key focal point. While the CPC Central Committee and According to a report from China Briefing, by 2020,
State Council have made agriculture the main focus of the government aims to create over 53 million hectares
the annual Number One Central Document for thirteen of farmland with promises of investment invest in
consecutive years, the new plan serves as the policy technology and training for farmers. The awareness and
guiding document for China’s agricultural development attention given to enhancing the industry’s potential
for the next five years (Jin 2016). for foreign investment and the global markets though
is quite recent. On September 20 this year, the Ministry
According to Xinhua, a five-year blueprint released by of Agriculture signed a memorandum of understanding
the Ministry of Agriculture in September 2016 outlined with the China Council for the Promotion of International
a framework to “integrate technology into agriculture in Trade (CCPIT), signifying a strategy of seriously pursuing
the next five years to increase productivity and efficiency”. overseas agricultural investment and trade (Jin 2016).
The blueprint stated that the government intends to
“improve intelligent management in planting, cultivation As a strategic industry in China, certain sectors are
and machinery and the use of Internet of Things (IoT) will protected from foreign investment. For instance, foreign
cover 17% of the agriculture sector”. Ten pilot provinces investment in genetically modified crops is prohibited
are being planned to test the integration of information or restricted, China Briefing reports (Jin 2016). However,
technology with the agricultural industrial chain (Xinhua the China Briefing report continues, as along with other
2016b). industrializing nations, China will account for two-thirds
of the global market for new agricultural machinery over
To finance this ambitious program, Xinhua also the next three years, opportunities for foreign investment
announced, as reported by Reuters, the Agricultural still abound in agricultural equipment and other
Development Bank of China has agreed to loan at least permitted agricultural products. With the government’s
3 trillion yuan (US$450 billion) by 2020. The bank, which support, farmers continue to experiment with technology,
aligns its lending with government policy, signed an using drones to distribute pesticides and tractors to
agreement with the Ministry to protect national food harvest crops; other activities such as coffee cultivation
security, support the sector doing business overseas and and fertilizer production are encouraged. Consumer
develop China’s seed industry (Carsten 2016). preferences for foreign and imported products also
remain strong. For foreign investors, China’s long-term
A month later, Xinhua reports, the State Council trend of subsidizing the development and modernization
followed through on making the Ministry of Agriculture’s of its agricultural industry promises fresh opportunities in
modernization blueprint official and, in its released five- the coming years (Ibid.).
174
