Page 166 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
total, or US$33.4 billion, was to be purchased in bumper harvest in 2021. Over the past six years,
2020 and 55% of the total, or US$40.4 billion, was China’s annual grain output has exceeded 650
to be purchased in 2021. China missed the 2020 million tons. The supply of food in the Chinese
target by US$6.15 billion and is 22% behind through market is generally good and grain reserves
the first four months of 2021, but purchases are remain at a relatively high level. Even during
coming on strong. In terms of sizable purchase the COVID-19 pandemic, the food market and
commitments of new crop commodities expected supply in China remained stable. The per capita
to ship in the latter months of 2021 and current stock of grains in China, an important indicator
commodity prices, there is a real chance that of food security, is 470 kilograms, well above the
the 2021 Phase One commitment level might be international average of 400 kg. But still, China
reached. If achieved, the US$40.4 billion in exports is keeping alert on food security as the current
to China would blow past the US$27.2 billion record international situation is undergoing extensive
for exports of agricultural products covered by the and profound changes. Despite growing demand
agreement achieved in 2020. According to Census for food, farmland and water resources are limited
Bureau data, total exports of agricultural and worldwide and food supply faces uncertainties
related products covered under the agreement due to natural disasters. China has also built up
for the most recent month available as of this its emergency food network, with 5,448 food
writing, April 2021, were US$2.2 billion. April was processing enterprises, 2,777 logistics centers and
the first month in 2021 in which actual exports 43,573 emergency supply stations. The country
met or exceeded the value of exports needed has established 1,072 State-level surveillance
to reach the year-end goal. January – April 2021 centers and 9,206 regional surveillance spots,
agricultural and related product exports totaled which provide the latest food market information
just over US$10 billion, which is 22% less than the and help to guide policy making (Yang).
US$12.9 billion needed to reach the year-end goal.
While being behind the goal seems like bad news, China's grain output has exceeded 650 million
US agricultural exports, relative to the Phase One metric tons for six consecutive years and the
commitments, are in much better shape in 2021 country has basically achieved self-sufficiency in
than they were over the same period in 2020. terms of grain seeds. Roughly 96% of plantations
Cumulative January through April 2020 exports in the country are using domestically cultivated
were 60% below the cumulative total that would crop varieties, and some of the rice varieties have
have been needed to achieve the 2020 target. already reached the same standards found in other
Exports started gaining considerable ground rice producing nations such as Japan and Thailand.
relative to the needed pace in April 2020, with But there are still shortfalls in some varieties and
the first month in which actual exports exceeded in market regulation, which should be enhanced
“needed” exports occurring in August. That with targeted policies and technologies to further
increasing pace brought the gap between China’s ensure food security and help people eat well. The
purchasing target and China’s actual purchases to country's demand for soybeans and corn keep
18%. And while missing the 2020 target by 18%, increasing while the yields are lower than in other
or US$6.15 billion, is significant, it’s sizably better top crop producing nations. China will strengthen
than when exports were two-thirds off the target its efforts in protecting its germplasm resources
during the early months of 2020 (Sprenkle). by building seed banks, developing innovative
technologies, cultivating major enterprises and
Grain Concerns protecting intellectual properties in the seed
industry. A new seed bank preserving 1.5 million
China will maintain its annual grain production items of germplasm resources, the largest in the
at no less than 650 million metric tons in the next world, is expected be put into operation before the
five years, with food security having been outlined first of quarter of 2022 (Zhao).
in the country's five-year plan for the first time
in 2021. China's food production has improved
steadily. The country saw the 17th consecutive
166
total, or US$33.4 billion, was to be purchased in bumper harvest in 2021. Over the past six years,
2020 and 55% of the total, or US$40.4 billion, was China’s annual grain output has exceeded 650
to be purchased in 2021. China missed the 2020 million tons. The supply of food in the Chinese
target by US$6.15 billion and is 22% behind through market is generally good and grain reserves
the first four months of 2021, but purchases are remain at a relatively high level. Even during
coming on strong. In terms of sizable purchase the COVID-19 pandemic, the food market and
commitments of new crop commodities expected supply in China remained stable. The per capita
to ship in the latter months of 2021 and current stock of grains in China, an important indicator
commodity prices, there is a real chance that of food security, is 470 kilograms, well above the
the 2021 Phase One commitment level might be international average of 400 kg. But still, China
reached. If achieved, the US$40.4 billion in exports is keeping alert on food security as the current
to China would blow past the US$27.2 billion record international situation is undergoing extensive
for exports of agricultural products covered by the and profound changes. Despite growing demand
agreement achieved in 2020. According to Census for food, farmland and water resources are limited
Bureau data, total exports of agricultural and worldwide and food supply faces uncertainties
related products covered under the agreement due to natural disasters. China has also built up
for the most recent month available as of this its emergency food network, with 5,448 food
writing, April 2021, were US$2.2 billion. April was processing enterprises, 2,777 logistics centers and
the first month in 2021 in which actual exports 43,573 emergency supply stations. The country
met or exceeded the value of exports needed has established 1,072 State-level surveillance
to reach the year-end goal. January – April 2021 centers and 9,206 regional surveillance spots,
agricultural and related product exports totaled which provide the latest food market information
just over US$10 billion, which is 22% less than the and help to guide policy making (Yang).
US$12.9 billion needed to reach the year-end goal.
While being behind the goal seems like bad news, China's grain output has exceeded 650 million
US agricultural exports, relative to the Phase One metric tons for six consecutive years and the
commitments, are in much better shape in 2021 country has basically achieved self-sufficiency in
than they were over the same period in 2020. terms of grain seeds. Roughly 96% of plantations
Cumulative January through April 2020 exports in the country are using domestically cultivated
were 60% below the cumulative total that would crop varieties, and some of the rice varieties have
have been needed to achieve the 2020 target. already reached the same standards found in other
Exports started gaining considerable ground rice producing nations such as Japan and Thailand.
relative to the needed pace in April 2020, with But there are still shortfalls in some varieties and
the first month in which actual exports exceeded in market regulation, which should be enhanced
“needed” exports occurring in August. That with targeted policies and technologies to further
increasing pace brought the gap between China’s ensure food security and help people eat well. The
purchasing target and China’s actual purchases to country's demand for soybeans and corn keep
18%. And while missing the 2020 target by 18%, increasing while the yields are lower than in other
or US$6.15 billion, is significant, it’s sizably better top crop producing nations. China will strengthen
than when exports were two-thirds off the target its efforts in protecting its germplasm resources
during the early months of 2020 (Sprenkle). by building seed banks, developing innovative
technologies, cultivating major enterprises and
Grain Concerns protecting intellectual properties in the seed
industry. A new seed bank preserving 1.5 million
China will maintain its annual grain production items of germplasm resources, the largest in the
at no less than 650 million metric tons in the next world, is expected be put into operation before the
five years, with food security having been outlined first of quarter of 2022 (Zhao).
in the country's five-year plan for the first time
in 2021. China's food production has improved
steadily. The country saw the 17th consecutive
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