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By Ye Xingqing, DRC

2017-06-20

Based on a comprehensive analysis of the agricultural resources, production and the potential for trade growth as well as trade balance, transportation corridors and geopolitics, some countries along the Belt and Road routes will play an important role in diversifying China’s global agricultural products supply system.

First, China needs to gradually establish a diversified global agricultural products supply system. As China’s dependency on imported agricultural products will continue to increase, we need to diversify the source of import, transportation corridor, import port and trade channel in view of ensuring agricultural products supply and national economic security.

Second, countries along the Belt and Road routes will play a major role in diversifying China’s global agricultural products supply system. 1. Viewing from the perspective of resources, the production and export of land-intensive agricultural products of countries along the routes have a great growth potential. 2. With respect to trade exchanges, China will have a large demand for land-intensive agricultural products from countries along the routes. 3. As regards logistics costs, the competitiveness of land-intensive agricultural products imported from countries along the routes to China will gradually become enhanced. 4. As for promoting trade balance, countries along the routes are likely to get more import orders from China of land-intensive agricultural products.

Third, policy options on improving the role of countries along the routes in China’s global agricultural products supply system in the future. 1. We need to enhance the data analysis of agricultural resources, production of important products and the potential for trade growth of major countries along the Belt and Road routes. 2. We need to establish outbound demonstration zones on agricultural cooperation centering on technological exchanges. 3. We need to foster bulk agricultural products traders with 10 million tons trade volume and enhance the control of important links in the industrial chain of important products. 4. We need to give full play to the role of land reclamation enterprises and encourage them to make pilot practices.