Page 174 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
of beef through legal channels has increased dramatically. around 17 million hours of fishing in 2016, mostly off the
At the same time, China has become the most affected southern coast of their home country, but also as far away
area of smuggling beef. About 1.5-2 million tons of beef is as Africa and South America. The next-biggest operation
smuggled into China annually according to the estimation is Taiwan’s, with 2.2 million hours of fishing. Greenpeace
of experts from the national beef cattle industry technical estimates China’s distant-water fishing fleet as the world’s
system. It can be seen that China’s imports and smuggling largest with 2,500 vessels (Reuters, From Africa). While
of beef account for about 30 percent of the total fish has always been a staple of the Chinese diet, it is
consumption, indicating that there is a huge gap of beef becoming an increasingly important source of protein.
between supply and demand in China (Wood). China’s per capita fish consumption grew at an average
annual rate of five percent between 1990 and 2013. At
Thus, China’s beef cattle industry is a small industry 37.9 kg of per capita consumption, residents of China eat
with a large market, having prominent opportunities more fish than any other people, and significantly more
for investment and integration. From the perspective of than the world average of 19.7 kg. To meet this demand,
supply and demand and economic laws, with the rising of China’s global fishing activities have exploded. China
residents’income level and urbanization rate, domestic beef is the largest producer of fish products and the world
terminal consumption market will maintain strong growth leader in terms of both aquatic capture (harvesting wild
momentum. At this point, China cannot immediately sea creatures) and aquaculture (rearing and farming sea
become self-sufficient, and there is much interest in the creatures in controlled environments) production. Despite
market potential for US beef in China since access was its tremendous production capacity, China is also the
achieved in 2017, but still, America imports less beef to third-largest fish importer, as many countries outsource
China than it does the Philippines. If the US was to increase their fish processing to China (China Power Team).
beef exports to China tenfold to a 10 percent market share,
it would make China the fifth-largest beef market for beef As fisheries off China’s coasts have declined over the
exports and add roughly 10 percent to total U.S. beef years, Chinese fishermen have been encouraged to head
exports (Stotts). Unfortunately, growth this rapid did not out into the high seas or exclusive economic zones, 200
occur in 2018. It doesn’t have a chance in 2019. miles off the shores of coastal countries. China had caught
a world-leading 1.52 million tons of seafood in the high
It is no surprise that other countries are looking seas in 2017. China’s most profitable high seas operations
forward to a better cut of the beef market. China opened were in the Northwest Pacific, but most of its other fisheries
its markets in August 2018 to Irish beef after years of appeared to be loss-makers.The most unprofitable Chinese
negotiations, making it the first European exporter to do fishing activity was bottom trawling in the Southwest
so. China banned imports of beef from the EU in 2000 Atlantic, which had an average net loss of US$98 million,
due to fears over mad cow disease (Brophy). China lifted even after subsidies were considered. Researchers from
its longstanding ban on British beef some two decades the National Geographic Society in Washington, the
after it was first imposed over mad cow disease as well. University of California, the University of British Columbia
China is currently the UK’s eighth largest export market for and the University of Western Australia found that as much
agricultural food, with over £560 million worth of food and as 54 percent of the high seas fishing industry would be
drink bought by Chinese consumers in 2017 (Morley). Also, unprofitable at its existing scale without big government
China is four years into an import tariff reduction across subsidies. The global report has found that top fishing
a range of Australian agriculture products, including countries such as China should cut government subsidies
beef and dairy. The country is the most China-dependent for industrial fleets because the money is helping to keep
developed economy (Bloomberg, China to Cut). many sinking and destructive high seas operations afloat.
Beijing has signaled its intention to take steps to protect
Fisheries the environment, targeting at least a 20 percent drop in
ocean catches by 2020 and moving to cap the number of
Humans are now fishing at least 55 percent of the ocean fishing vessels to 3,000 by the same year (Zhuang).
world’s oceans, an area four times larger than the area
occupied by humanity’s onshore agriculture (Mooney The story is completely different on domestic
and Dennis). China has the world’s largest and farthest waterways. By the turn of the century, China realized its
ranging fishing operation, outstripping the next 10 domestic production was literally shrinking. The local
biggest combined. Ships from Mainland China amassed aquatic food source was not only bringing in smaller halls,
174
of beef through legal channels has increased dramatically. around 17 million hours of fishing in 2016, mostly off the
At the same time, China has become the most affected southern coast of their home country, but also as far away
area of smuggling beef. About 1.5-2 million tons of beef is as Africa and South America. The next-biggest operation
smuggled into China annually according to the estimation is Taiwan’s, with 2.2 million hours of fishing. Greenpeace
of experts from the national beef cattle industry technical estimates China’s distant-water fishing fleet as the world’s
system. It can be seen that China’s imports and smuggling largest with 2,500 vessels (Reuters, From Africa). While
of beef account for about 30 percent of the total fish has always been a staple of the Chinese diet, it is
consumption, indicating that there is a huge gap of beef becoming an increasingly important source of protein.
between supply and demand in China (Wood). China’s per capita fish consumption grew at an average
annual rate of five percent between 1990 and 2013. At
Thus, China’s beef cattle industry is a small industry 37.9 kg of per capita consumption, residents of China eat
with a large market, having prominent opportunities more fish than any other people, and significantly more
for investment and integration. From the perspective of than the world average of 19.7 kg. To meet this demand,
supply and demand and economic laws, with the rising of China’s global fishing activities have exploded. China
residents’income level and urbanization rate, domestic beef is the largest producer of fish products and the world
terminal consumption market will maintain strong growth leader in terms of both aquatic capture (harvesting wild
momentum. At this point, China cannot immediately sea creatures) and aquaculture (rearing and farming sea
become self-sufficient, and there is much interest in the creatures in controlled environments) production. Despite
market potential for US beef in China since access was its tremendous production capacity, China is also the
achieved in 2017, but still, America imports less beef to third-largest fish importer, as many countries outsource
China than it does the Philippines. If the US was to increase their fish processing to China (China Power Team).
beef exports to China tenfold to a 10 percent market share,
it would make China the fifth-largest beef market for beef As fisheries off China’s coasts have declined over the
exports and add roughly 10 percent to total U.S. beef years, Chinese fishermen have been encouraged to head
exports (Stotts). Unfortunately, growth this rapid did not out into the high seas or exclusive economic zones, 200
occur in 2018. It doesn’t have a chance in 2019. miles off the shores of coastal countries. China had caught
a world-leading 1.52 million tons of seafood in the high
It is no surprise that other countries are looking seas in 2017. China’s most profitable high seas operations
forward to a better cut of the beef market. China opened were in the Northwest Pacific, but most of its other fisheries
its markets in August 2018 to Irish beef after years of appeared to be loss-makers.The most unprofitable Chinese
negotiations, making it the first European exporter to do fishing activity was bottom trawling in the Southwest
so. China banned imports of beef from the EU in 2000 Atlantic, which had an average net loss of US$98 million,
due to fears over mad cow disease (Brophy). China lifted even after subsidies were considered. Researchers from
its longstanding ban on British beef some two decades the National Geographic Society in Washington, the
after it was first imposed over mad cow disease as well. University of California, the University of British Columbia
China is currently the UK’s eighth largest export market for and the University of Western Australia found that as much
agricultural food, with over £560 million worth of food and as 54 percent of the high seas fishing industry would be
drink bought by Chinese consumers in 2017 (Morley). Also, unprofitable at its existing scale without big government
China is four years into an import tariff reduction across subsidies. The global report has found that top fishing
a range of Australian agriculture products, including countries such as China should cut government subsidies
beef and dairy. The country is the most China-dependent for industrial fleets because the money is helping to keep
developed economy (Bloomberg, China to Cut). many sinking and destructive high seas operations afloat.
Beijing has signaled its intention to take steps to protect
Fisheries the environment, targeting at least a 20 percent drop in
ocean catches by 2020 and moving to cap the number of
Humans are now fishing at least 55 percent of the ocean fishing vessels to 3,000 by the same year (Zhuang).
world’s oceans, an area four times larger than the area
occupied by humanity’s onshore agriculture (Mooney The story is completely different on domestic
and Dennis). China has the world’s largest and farthest waterways. By the turn of the century, China realized its
ranging fishing operation, outstripping the next 10 domestic production was literally shrinking. The local
biggest combined. Ships from Mainland China amassed aquatic food source was not only bringing in smaller halls,
174
