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9 White Paper on the Business Environment in China
population fell by 100 million in the decade to 2006 but Forestry
only 28 million in the following ten years. Most of those
still tilling the fields are over 55 and poorly educated. The China set up two new ministries to oversee the
rural economy remains backward. A recent agricultural protection of its natural resources, ecology, and
census showed there were 314 million people employed environment in 2018. The move brought together
in farming in 2016. That is 40 percent of China’s workforce, regulatory duties once scattered across many agencies
but agriculture accounts for less than 9 percent of to better combat pollution. The changes effectively
GDP rural labor remains extremely unproductive (The upgraded the existing Ministry of Environmental
Economist Intelligence Unit). Protection, replacing it with the Ministry of Ecological
Environment. This new ministry will tackle problems
In 2017, however, millions of Chinese farmers were such as climate change and greenhouse emissions,
reaping the benefits of a massive agricultural study, which were previously under the National Development
which helped them increase their crop yields while and Reform Commission (NDRC). It will also tackle sea,
reducing the use of fertilizer. Specific, evidence-based river and groundwater pollution, nuclear and radiation
recommendations were made to 21 million Chinese safety by formulating and implementing policies, plans
farmers over a decade, offering them detailed advice and standards on the ecology and environment. The
about which variety of crop to use, exactly the best time second new ministry, the Ministry of Natural Resources,
to plant, how many seeds to sow and how much fertilizer will oversee China’s grasslands, forests, wetlands, water
to use. The detailed guidance led to an increase in the and maritime resources, and urban and township
amount of maize, wheat and rice produced, with crop planning. These tasks were once the responsibilities of
yields increasing at an average of 11 percent. Meanwhile, various ministries or agencies. It will look to develop
fertilizer use was reduced by an average of 15 percent and protect these natural resources, and establish a
per crop, saving 1.2 million tons of nitrogen, according system for paid use of them. The ministry will also be
to a study in Nature in 2018 (Cyranoski). The combination in charge of Beijing’s reforestation push to help combat
of greater yields and less fertilizer led to total economic desertification (Cheong).
savings of US$12.2 billion for the farmers. The farmers
were convinced to change their practices as a result of Protecting the environment is a key goal for Beijing,
14,000 workshops, on-site demonstrations and outreach with Chinese President Xi Jinping pledging to build a
programs. This was achieved with the help of more than “beautiful China” with blue skies and clean air during
1,000 researchers, 65,000 bureaucrats and technicians the 19th Party Congress. While the country is the world’s
as well as 140,000 representatives from agriculture largest polluter, it has also remained committed to the
businesses. The success in China is also partially due to Paris Climate Change Accord even as the US has said it
its history of over-use of fertilizers. The report into the would withdraw. China has made forestation one of its
experiment notes that the Chinese farmers needed some most important environmental projects. To combat
convincing about the evidence before changing their climate change and soil erosion, the country aims to
normal farming methods (Harris). expand its forest coverage ratio to more than 23 percent
by 2020, up from 21.7 percent in 2015 (Asia Times). The
Perhaps even more important to the farmers, new country is resolute in improving its ecology. China is to
changes to land tenure are aimed at encouraging the build 300 national forest cities by 2025, according to
larger investments in larger farms. The recent census a plan issued by the National Forestry and Grassland
found only 4 million “scaled-up farms”, 2 percent of the Administration (NFGA) (Zhang et al.).
total. Almost 30 percent of them were in livestock or fish
farming, compared with only 4 percent for all farms. This The germinal moment in China’s green obsession
reflects the continued importance of ideology: animals occurred in 1998 when massive flooding along the
are regarded as private property but land as collective. Yangtze River killed thousands, left millions homeless, and
This impedes the growth of large, privately owned, crop- caused billions of dollars-worth of damage. The primary
growing ventures. In 2018 officials completed finished reason for the flooding was the upland deforestation
handing out certificates to farmers with details of their where land was cleared to grow food to feed the country’s
plot boundaries. This should spur consolidation of farm massive population. The country’s “Grain for Green”—
lands (The Economist Intelligence Unit). also known as the Conversion of Cropland to Forest
Program (CCFP)—response was just as massive a year
162
population fell by 100 million in the decade to 2006 but Forestry
only 28 million in the following ten years. Most of those
still tilling the fields are over 55 and poorly educated. The China set up two new ministries to oversee the
rural economy remains backward. A recent agricultural protection of its natural resources, ecology, and
census showed there were 314 million people employed environment in 2018. The move brought together
in farming in 2016. That is 40 percent of China’s workforce, regulatory duties once scattered across many agencies
but agriculture accounts for less than 9 percent of to better combat pollution. The changes effectively
GDP rural labor remains extremely unproductive (The upgraded the existing Ministry of Environmental
Economist Intelligence Unit). Protection, replacing it with the Ministry of Ecological
Environment. This new ministry will tackle problems
In 2017, however, millions of Chinese farmers were such as climate change and greenhouse emissions,
reaping the benefits of a massive agricultural study, which were previously under the National Development
which helped them increase their crop yields while and Reform Commission (NDRC). It will also tackle sea,
reducing the use of fertilizer. Specific, evidence-based river and groundwater pollution, nuclear and radiation
recommendations were made to 21 million Chinese safety by formulating and implementing policies, plans
farmers over a decade, offering them detailed advice and standards on the ecology and environment. The
about which variety of crop to use, exactly the best time second new ministry, the Ministry of Natural Resources,
to plant, how many seeds to sow and how much fertilizer will oversee China’s grasslands, forests, wetlands, water
to use. The detailed guidance led to an increase in the and maritime resources, and urban and township
amount of maize, wheat and rice produced, with crop planning. These tasks were once the responsibilities of
yields increasing at an average of 11 percent. Meanwhile, various ministries or agencies. It will look to develop
fertilizer use was reduced by an average of 15 percent and protect these natural resources, and establish a
per crop, saving 1.2 million tons of nitrogen, according system for paid use of them. The ministry will also be
to a study in Nature in 2018 (Cyranoski). The combination in charge of Beijing’s reforestation push to help combat
of greater yields and less fertilizer led to total economic desertification (Cheong).
savings of US$12.2 billion for the farmers. The farmers
were convinced to change their practices as a result of Protecting the environment is a key goal for Beijing,
14,000 workshops, on-site demonstrations and outreach with Chinese President Xi Jinping pledging to build a
programs. This was achieved with the help of more than “beautiful China” with blue skies and clean air during
1,000 researchers, 65,000 bureaucrats and technicians the 19th Party Congress. While the country is the world’s
as well as 140,000 representatives from agriculture largest polluter, it has also remained committed to the
businesses. The success in China is also partially due to Paris Climate Change Accord even as the US has said it
its history of over-use of fertilizers. The report into the would withdraw. China has made forestation one of its
experiment notes that the Chinese farmers needed some most important environmental projects. To combat
convincing about the evidence before changing their climate change and soil erosion, the country aims to
normal farming methods (Harris). expand its forest coverage ratio to more than 23 percent
by 2020, up from 21.7 percent in 2015 (Asia Times). The
Perhaps even more important to the farmers, new country is resolute in improving its ecology. China is to
changes to land tenure are aimed at encouraging the build 300 national forest cities by 2025, according to
larger investments in larger farms. The recent census a plan issued by the National Forestry and Grassland
found only 4 million “scaled-up farms”, 2 percent of the Administration (NFGA) (Zhang et al.).
total. Almost 30 percent of them were in livestock or fish
farming, compared with only 4 percent for all farms. This The germinal moment in China’s green obsession
reflects the continued importance of ideology: animals occurred in 1998 when massive flooding along the
are regarded as private property but land as collective. Yangtze River killed thousands, left millions homeless, and
This impedes the growth of large, privately owned, crop- caused billions of dollars-worth of damage. The primary
growing ventures. In 2018 officials completed finished reason for the flooding was the upland deforestation
handing out certificates to farmers with details of their where land was cleared to grow food to feed the country’s
plot boundaries. This should spur consolidation of farm massive population. The country’s “Grain for Green”—
lands (The Economist Intelligence Unit). also known as the Conversion of Cropland to Forest
Program (CCFP)—response was just as massive a year
162
