New land policy in China expected to boost trade in agriculture

Channel News Asia
New land policy in China expected to boost trade in agriculture
By Lee Huey Shin, Channel NewsAsia | Posted: 13 November 2008 2030 hrs

SINGAPORE: Vietnam is China's biggest trading partner in ASEAN, with bilateral trade amounting to US$22 billion in 2007. Agriculture made up 15 to 20 per cent of it.

China is an agricultural giant. Figures from the Chinese National Bureau of Statistics show that half of the country's 1.3 billion population is engaged in farming.

The Chinese economy has flourished in recent years but contributions from its agriculture sector have just begun to grow.

Under China's new land policy, enterprises engaged in agriculture can purchase more land for large-scale production.

With this, agricultural production is expected to rise significantly. However, a huge investment is needed to set up a large-scale farm.

Experts said with many countries in recession, attracting investments may be difficult.

Shao Fa Huan, professor, Guang Xi University, China Agricultural Economics & Management, said: "A lack of investments will affect the setting up of large agricultural enterprises and prevent enterprises from entering the agricultural sector. In the short term, the effects may not be obvious but may be seen in the mid to long term."

Experts said problems will crop up in the implementation of the new land policy and authorities should strengthen regulations and control land use. - CNA/vm