Page 160 - 2022 White Paper on the Business Environment in China
P. 160
2 White Paper on the Business Environment in China
2.1 Agriculture
Key Take-Aways are important for China’s trading partners and its
agricultural export competitiveness. Improving food
• China is continuing to promote science safety in China would also reduce food loss and
and technology innovation in agriculture to waste and generate large climate co-benefits. The
support all-round rural revitalization in the 14th World Bank’s Board of Executive Directors approved
Five-Year Plan period (2021-2025). a loan of US$400 million for the China Food Safety
Improvement Project in March 2021 to help China
• China’s "No. 1 central document" for improve food safety management at both the
2021 stressed the efforts to comprehensively national and targeted subnational levels, and
push forward rural vitalization and accelerate the reduce food safety risks in selected value chains.
modernization of agriculture and rural areas. By taking an integrated and risk-based approach,
consistent with global good practices, this project
• Efforts will be injected to improve can help China mitigate the public health risks and
financial services for new types of agricultural reduce the economic and environmental costs
business entities by Chinese financial and associated with unsafe food production, processing
agricultural authorities amid the country's push and trading practices. Because China is a major food
for rural vitalization, and agricultural and rural exporter and a hotspot for the emergence of food-
modernization. The rural inclusive financial reform borne diseases, the project carries important global
experiments will be expanded, while pilot zones benefits. The project will strengthen food safety
for financial service supporting rural vitalization regulations, enforcement, and compliance along
will be built. selected value chains - including those for seafood,
pork, fruit and vegetables - consistent with global
• Quality seeds have played an important practices. It will promote scientific and evidence-
role in the development of China's agricultural based enforcement of food safety regulations at
industry. Yet China has to depend on imports for the provincial and municipal levels using risk-based
the further development of the agricultural sector. approaches. The project will assist farms and food
More importantly, the US-triggered trade war has enterprises to improve compliance with food safety
revealed some loopholes in China's seed security regulations and achieve food safety certification
and overall farming system. standards by promoting good agriculture practices,
including in relation to safety, climate smartness
Covid-19 Repercussions and environmental sustainability; encouraging use
of biodegradable plastic mulch, eco-friendly food
China bears a considerable share of global health packaging, and plastics recycling; upgrading public
and economic burden of consuming unsafe food. infrastructure for improved water quality and
The cost of food-borne diseases in terms of human waste management, point source pollution control,
capital productivity loss in China is estimated at and reduced biohazards in agriculture markets;
over US$30 billion per year, almost 50% of the and ensuring risk-based preventive controls for
total economic burden of food-borne diseases in maintaining safe food environment from ‘farm
Asia. The COVID pandemic further exacerbated to plate’. Besides contributing to food safety, the
food safety challenges, notably in processing, project will also reduce food loss and waste and
packaging, and transporting agricultural products. generate large climate co-benefits. The project
In addition, improvements in food safety standards will be implemented by the State Administration
of Market Regulation (SAMR) and the Ministry of
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2.1 Agriculture
Key Take-Aways are important for China’s trading partners and its
agricultural export competitiveness. Improving food
• China is continuing to promote science safety in China would also reduce food loss and
and technology innovation in agriculture to waste and generate large climate co-benefits. The
support all-round rural revitalization in the 14th World Bank’s Board of Executive Directors approved
Five-Year Plan period (2021-2025). a loan of US$400 million for the China Food Safety
Improvement Project in March 2021 to help China
• China’s "No. 1 central document" for improve food safety management at both the
2021 stressed the efforts to comprehensively national and targeted subnational levels, and
push forward rural vitalization and accelerate the reduce food safety risks in selected value chains.
modernization of agriculture and rural areas. By taking an integrated and risk-based approach,
consistent with global good practices, this project
• Efforts will be injected to improve can help China mitigate the public health risks and
financial services for new types of agricultural reduce the economic and environmental costs
business entities by Chinese financial and associated with unsafe food production, processing
agricultural authorities amid the country's push and trading practices. Because China is a major food
for rural vitalization, and agricultural and rural exporter and a hotspot for the emergence of food-
modernization. The rural inclusive financial reform borne diseases, the project carries important global
experiments will be expanded, while pilot zones benefits. The project will strengthen food safety
for financial service supporting rural vitalization regulations, enforcement, and compliance along
will be built. selected value chains - including those for seafood,
pork, fruit and vegetables - consistent with global
• Quality seeds have played an important practices. It will promote scientific and evidence-
role in the development of China's agricultural based enforcement of food safety regulations at
industry. Yet China has to depend on imports for the provincial and municipal levels using risk-based
the further development of the agricultural sector. approaches. The project will assist farms and food
More importantly, the US-triggered trade war has enterprises to improve compliance with food safety
revealed some loopholes in China's seed security regulations and achieve food safety certification
and overall farming system. standards by promoting good agriculture practices,
including in relation to safety, climate smartness
Covid-19 Repercussions and environmental sustainability; encouraging use
of biodegradable plastic mulch, eco-friendly food
China bears a considerable share of global health packaging, and plastics recycling; upgrading public
and economic burden of consuming unsafe food. infrastructure for improved water quality and
The cost of food-borne diseases in terms of human waste management, point source pollution control,
capital productivity loss in China is estimated at and reduced biohazards in agriculture markets;
over US$30 billion per year, almost 50% of the and ensuring risk-based preventive controls for
total economic burden of food-borne diseases in maintaining safe food environment from ‘farm
Asia. The COVID pandemic further exacerbated to plate’. Besides contributing to food safety, the
food safety challenges, notably in processing, project will also reduce food loss and waste and
packaging, and transporting agricultural products. generate large climate co-benefits. The project
In addition, improvements in food safety standards will be implemented by the State Administration
of Market Regulation (SAMR) and the Ministry of
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