context: China often touts its low ag tariffs, only one-fourth of the world's average. However, efforts to maintain food security never fade away. While offering opportunities to exporters targeting niche markets, regulators remain cautious when it comes to bulk commodities.
Based on the premise of absolute security of edible staples and high self-sufficiency in major grains, China has actively increased ag imports to meet domestic consumers' growing appetite for diversified and quality food. In 2021, the total import value increased by 28.6 percent to C¥220 bn, making China the world's largest food buyer. The huge Chinese market provides a stable destination for overseas producers, enabling them to enhance scale and productivity. China does not scramble for limited food with other buyers. It instead helps incentivise global ag output growth, benefiting both exporters and importers, argues Economic Daily. China's dependence on the global market for food products will likely further grow, as will supply chain risks. Highly concentrated in a few countries, China's grain procurement is threatened by the complicated external environment. Without pricing power, Chinese buyers remain vulnerable to inflation in the commodity market. The piece stresses the importance of 'moderating' imports. While sticking to the idea of opening up, the state should be aware of the self-sufficiency levels and priorities of various ag products and control the scale of procurement accordingly. Rather than accepting changing global ag trade regulations passively, the piece also suggests the state leverage its role as the leading importer and maintain a friendly global trade environment. South-south cooperation is another opportunity for China to get deeply involved in the grain supply chains of the developing world via investing in irrigation and port systems worldwide.