Some characteristics of Chinese agriculture

Tömpe, Ferenc

Keywords: transformation to market economy, agriculture, agricultural policies, WTO requirements

Chine has set out on the road to the transformation of Chinese agriculture aimed at developing an environment for market economy as demanded by her membership of WTO. The earlier centrally directed economy has been fundamentally changed with respect to both internal and external relationships. Customs and tariffs were continuously and significantly lowered, many laws and regulations were gradually changed and alterations have been made to the definition of priorities in investments and long-term strategies in economic policies. Of the possible changes the most obvious and important measures are increases in supporting investments leading to improved efficiency (a measure that WTO does not limit), increases in funds for agricultural research, improvements to the infrastructure of countryside (mainly to roads) and establishment and operation of a countrywide information network. Beyond these measures Chine has to establish the means for complying with the limitations of trade applying to her and with regulations controlling animal and plant health. It is also in the interest of Chine to promote the development of some special areas such as where Chine enjoys a comparative advantage (garden products, fruits, animal products, fishing), areas competitive with imports or even have export potentials. What is most important from the point of view of the entire Chinese society is the confirmation of governmental intention and acceptance of governmental responsibility for the establishment of a new economical paradigm. The essence of this is none other than abandoning direct government (state) intervention and participation in the economy and adopting instead an indirect, regulating role. Such transformations could give Chine a good chance to exploit her advantages maximally and minimise disadvantageous costs and thus become an engine of the 21st Century’s world economy.

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