CHINA WATCHChina’s Growing Agricultural Problems Pose Risks for the U.S.

Published 31 May 2022

China is facing a growing demand on its agricultural production. The Chinese government has taken several domestic initiatives to address the growing problem, but it has also gone abroad to address its needs through investments and acquisitions of farmland, animal husbandry, agricultural equipment, and intellectual property (IP), particularly of GM seeds These efforts present several risks to U.S. economic and national security.

China is facing a growing demand on its agricultural production. The Chinese government has taken several policy, technology, and economic initiatives to address the growing problem, but these measures are not enough to solve China’s problems.China has also gone abroad to address its needs through investments and acquisitions of farmland, animal husbandry, agricultural equipment, and intellectual property (IP), particularly of GM seedsThese efforts present several risks to U.S. economic and national security.

The U.S.-China Economic and Security Review Commission has just issued a new report which addresses the growing challenge China’s agricultural problems pose for the United States.

Here are two sections from the report:

Introduction
China faces growing demands on its agricultural production that it seeks to address through policy, technology, and economic activities. In 2021, China imported a record amount of corn at 28.35 million metric tons (mmt), 152 percent more than in 2020 and more than 10 percent of China’s Ministry of Agriculture and Rural Affairs (MARA) estimate for the country’s total corn consumption (see Tables 1 and 2). 1 The China Academy of Social Sciences’ 2020 Rural Development Institute report claimed “there is likely to be a grain shortfall of about 130 mmt, including about 25 mmt of staple food grain” by the end of 2025.* 2

Diminishing arable land, shifting demographics, and natural disasters compound these trends and present food security challenges to China’s leaders. In response, China has introduced domestic policies to promote food security and lessen food waste, both of which have been a priority of General Secretary of the Chinese Communist Party (CCP) Xi Jinping since he assumed power. Under his rule, the government has also established policies to expand domestic farmland and harness innovations in agricultural technologies, such as genetically modified (GM) seed lines, all in an effort to bolster food security.

The Chinese government’s domestic efforts, however, are not enough to solve China’s problems. Recognizing its challenges, China has also gone abroad to address its needs through investments and acquisitions of farmland, animal husbandry, agricultural equipment, and intellectual property (IP), particularly of GM seeds. The United States is a global leader in all of these fields, making it a prime trading partner and often a target of China’s efforts to strengthen its agriculture sector and food security, sometimes through illicit means.