Page 122 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
corn planted areas. China's domestic corn prices seed sector and galvanize its development as
have also surged since early 2021, with corn the country continues to push forward rural
futures on the Dalian reaching their record high in vitalization. China has outlined seed industry
May 2021 in a dynamic that largely drove farmers development as one of its policy priorities, with
to shift their lands to plant corn rather than other specific moves such as implementing an action
crops. Larger domestic production squeezed plan on seed industry, promoting germplasm
some margins and demand expectations for collection and enhancing intellectual property
imported corn, with imports expected to reach (IP) protection in the sector China has basically
only 20 million tons for 2021-2022, compared with achieved seed self-sufficiency in two of its staple
29.56 million tons recorded in 2021. The United grains -- rice and wheat. However, in terms of
States Department of Agriculture (USDA) has also corns, another staple in China, the country
pegged its estimate for China’s imports in 2021- remains partially dependent on imported
2022 12% below the previous year at 26 million seeds as its corn breeding capabilities still lag
tons. At the same time, despite the larger domestic behind the international advanced level. Under
production, the balance in supply and demand in Xi's leadership, the country has been on the
China's corn market remains tight, underpinning move to energize its seed industry. The issue
prices for the grain (Chen). has been stressed in several of its high-level
meetings and heavyweight documents, with
To ensure its corn supply, China is taking germplasm, breeding technologies and seed IP
steps to accelerate imports of Brazilian corn, protection highlighted on its rural vitalization
bringing on a new supplier of the grain. Beijing agenda. In a milestone action plan on seed
will temporarily waive a key clause which paves industry vitalization passed in 2021, protection
the way for Brazil, the biggest exporter behind of germplasm is listed as a primary task. The
the US, to ship corn to China in 2022. This follows country's ongoing large-scale germplasm census
a deal in May that guarantees Brazil access to the has so far progressed as planned and archived
world's top grains market over the long term. That initial results. Efforts to build germplasm pools
agreement, which took years to conclude due to are also underway, with a national crop seed
phytosanitary concerns, requires the Brazilian bank set up in September 2021 (Xinhua, “Sowing
government to provide guidance to farmers on for Future: Xi Leads China's Seed Industry
chemical application and crop management prior Vitalization_National_The People’s Government
to seeding to ensure growers take measures to of Henan Province”).
avoid diseases. China will waive this condition
for the current season. If the rule still applied, it Technological advancements are ensuring
would hinder shipments as it was imposed after stronger seed protection and development.
the start of planting. Corn producers and exporters A new independently developed method to
were informed of China's decision by the Brazilian identify seed varieties at the molecular level is
agriculture ministry in a meeting on August 5. China being applied to help detect counterfeits and
has been seeking to diversify its corn imports, of quickly clarify the intellectual property owners
which about 70% came from the US and 30% from of imported germ plasm resources. The method,
Ukraine in 2021. The move to boost purchases called MNP marker, can obtain identifications for
from Brazil comes as Ukrainian supplies have been crop varieties with much higher efficiency and
cut off from the world market by Russia's invasion. 99.98% accuracy. Using the method, a person
Brazil is expected to reap 114.7 million tons of corn can identify 1,033 markers of rice cultivars.
this season (Freitas and Cang). The efficiency is a thousand times higher than
traditional identification methods. Although China
Seed Industry has made achievements in the seed industry in
recent years, it still faces challenges cultivating
Seeds are an important concern to the Chinese good varieties and solving the homogenization
government in 2022. Chinese authorities pledge problem of seed resources. By using an MNP-
to make technological breakthroughs in the fingerprint database, seed breeding companies
can decide whether to give up on less innovative
122
corn planted areas. China's domestic corn prices seed sector and galvanize its development as
have also surged since early 2021, with corn the country continues to push forward rural
futures on the Dalian reaching their record high in vitalization. China has outlined seed industry
May 2021 in a dynamic that largely drove farmers development as one of its policy priorities, with
to shift their lands to plant corn rather than other specific moves such as implementing an action
crops. Larger domestic production squeezed plan on seed industry, promoting germplasm
some margins and demand expectations for collection and enhancing intellectual property
imported corn, with imports expected to reach (IP) protection in the sector China has basically
only 20 million tons for 2021-2022, compared with achieved seed self-sufficiency in two of its staple
29.56 million tons recorded in 2021. The United grains -- rice and wheat. However, in terms of
States Department of Agriculture (USDA) has also corns, another staple in China, the country
pegged its estimate for China’s imports in 2021- remains partially dependent on imported
2022 12% below the previous year at 26 million seeds as its corn breeding capabilities still lag
tons. At the same time, despite the larger domestic behind the international advanced level. Under
production, the balance in supply and demand in Xi's leadership, the country has been on the
China's corn market remains tight, underpinning move to energize its seed industry. The issue
prices for the grain (Chen). has been stressed in several of its high-level
meetings and heavyweight documents, with
To ensure its corn supply, China is taking germplasm, breeding technologies and seed IP
steps to accelerate imports of Brazilian corn, protection highlighted on its rural vitalization
bringing on a new supplier of the grain. Beijing agenda. In a milestone action plan on seed
will temporarily waive a key clause which paves industry vitalization passed in 2021, protection
the way for Brazil, the biggest exporter behind of germplasm is listed as a primary task. The
the US, to ship corn to China in 2022. This follows country's ongoing large-scale germplasm census
a deal in May that guarantees Brazil access to the has so far progressed as planned and archived
world's top grains market over the long term. That initial results. Efforts to build germplasm pools
agreement, which took years to conclude due to are also underway, with a national crop seed
phytosanitary concerns, requires the Brazilian bank set up in September 2021 (Xinhua, “Sowing
government to provide guidance to farmers on for Future: Xi Leads China's Seed Industry
chemical application and crop management prior Vitalization_National_The People’s Government
to seeding to ensure growers take measures to of Henan Province”).
avoid diseases. China will waive this condition
for the current season. If the rule still applied, it Technological advancements are ensuring
would hinder shipments as it was imposed after stronger seed protection and development.
the start of planting. Corn producers and exporters A new independently developed method to
were informed of China's decision by the Brazilian identify seed varieties at the molecular level is
agriculture ministry in a meeting on August 5. China being applied to help detect counterfeits and
has been seeking to diversify its corn imports, of quickly clarify the intellectual property owners
which about 70% came from the US and 30% from of imported germ plasm resources. The method,
Ukraine in 2021. The move to boost purchases called MNP marker, can obtain identifications for
from Brazil comes as Ukrainian supplies have been crop varieties with much higher efficiency and
cut off from the world market by Russia's invasion. 99.98% accuracy. Using the method, a person
Brazil is expected to reap 114.7 million tons of corn can identify 1,033 markers of rice cultivars.
this season (Freitas and Cang). The efficiency is a thousand times higher than
traditional identification methods. Although China
Seed Industry has made achievements in the seed industry in
recent years, it still faces challenges cultivating
Seeds are an important concern to the Chinese good varieties and solving the homogenization
government in 2022. Chinese authorities pledge problem of seed resources. By using an MNP-
to make technological breakthroughs in the fingerprint database, seed breeding companies
can decide whether to give up on less innovative
122
