Россия и ВТО: присоединение и его последствия / Текущая аналитика / A review of Lei Sun, "Analysis on the strategy of developing soybean science and technology and revitalizing soybean industry under the background of new era in China"

A review of Lei Sun, "Analysis on the strategy of developing soybean science and technology and revitalizing soybean industry under the background of new era in China"

A review of Lei Sun, ‘Analysis on the strategy of developing soybean science and technology and revitalizing soybean industry under the background of new era in China???????????????????????????[1]’, Journal of Soybean Science & Technology(??????), 2020, no.4, pp 20-23. This article is published in Chinese.

Sun points out that China's heavy dependency on imports and the single source is detrimental to China's food security. Therefore, the author analyzes China's soybean industry's current situation, identifies shortcomings, and proposes corresponding strategies for improvement.

The article discusses China's soybean industry's problems and drawbacks in four areas: soybean varieties, planting area, international trade, and foreign investment. Although China has been cultivating better varieties, the average yield per unit is still far below that of major soybean producers such as the United States, Brazil, and Argentina. Besides, because soybean yields and returns are not as good as those of corn and rice, Chinese farmers are not very motivated to grow soybeans, and the area planted for soybeans is shrinking year by year. The above two points mean that 80% of China's soybean demand needs to be compensated by imports, and the source of imports is exceptionally homogeneous. In 2017, for example, China imported 94% of its total soybean imports from Brazil, the United States, and Argentina. In addition to high external dependence, the author points out that foreign capital has penetrated China's domestic soybean industry. International grain traders control 80% of China's soybean crushing and processing capacity. All of these place China's soybean trade at risk.

To address the risks, the author analyzes and summarizes several Chinese measures. Four of them are within the framework of the "Soybean Revitalization Plan" proposed by the Chinese central government in 2019:

  1. To establish a modern breeding system that integrates cultivation and promotion and improves the reward scheme to increase breeding institutions' incentives.
  2. To improve planting patterns to improve soybean yields and reduce the gap between China and the world leaders.
  3. To expand soybean planting area through relay intercropping and crop rotation.
  4. To coordinate the three major domestic production areas' production order to protect the rights and interests of soybean farmers and jointly promote industrial development.

Apart from the 2019 Soybean Revitalization Plan, Sun also suggests that soybean as an environmentally friendly crop should be encouraged to become the preferred crop rotation. He argues that diversifying import sources is also essential. He cites China's cooperation with the Russian Far East as an example of how China seeks to work with neighboring countries to broaden soybean imports and reduce its dependence on the United States and South American countries. Lastly, Sun suggested developing alternatives to soybean meal and soybean oil to reduce the demand for soybeans.

The article points out that the world is in the midst of a century of unprecedented change. Given the U.S.-China trade war and China's high dependence on soybeans, it’s urgent to revitalize China's soybean industry and ensure food security.


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