{"id":11967,"date":"2019-11-12T23:15:10","date_gmt":"2019-11-12T23:15:10","guid":{"rendered":"http:\/\/chinesemoment.com\/chinese-words-phrases\/words-phrases-ci-hui-yu-ci-zu-buying-farmland-abroad\/"},"modified":"2019-11-12T23:15:10","modified_gmt":"2019-11-12T23:15:10","slug":"words-phrases-ci-hui-yu-ci-zu-buying-farmland-abroad","status":"publish","type":"post","link":"https:\/\/chinesemoment.com\/th\/words-phrases-ci-hui-yu-ci-zu-buying-farmland-abroad\/","title":{"rendered":"Words & Phrases \u8bcd\u6c47\u4e0e\u8bcd\u7ec4 – Buying farmland abroad"},"content":{"rendered":"
\n

Taking to heart the centuries-old saying that "<\/span>man eats by nature<\/span><\/b>," China is seeking to maintain food <\/span>sufficiency<\/span><\/b> by adopting a "going out" strategy. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

More than a decade has passed since China’s entry into the World Trade Organization (WTO) in 2001. However, in co<\/em>ntrast to Chinese oil and mining firms’ numerous investments overseas, there seem to have been few similar steps taken by Chinese<\/span> <\/span>agricultural<\/span><\/b> companies. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Being one the world’s biggest food consumers, China remains a food im<\/em>porter and is sometimes rattled by rising global food prices. Analysts say China needs to look at strategies to ensure long-term food security for its 1.3 billion people, such as procuring and renting farmland overseas. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Multilayered challenges <\/span><\/font><\/span><\/b><\/p>\n

 <\/font><\/span><\/p>\n

The Chinese Academy of Social Sciences earlier estimated that China’s farm<\/span> <\/span>trade deficit<\/span><\/b> will co<\/em>ntinue to widen to a<\/em>bout $40 billion in 2012 following an increase of nearly 50 percent in 2011 to $34.12 billion. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

China’s per capita <\/span>farmland<\/span><\/b> is less than 40 percent of the global average and water resources are a quarter of the average, giving it fewer comparative advantages in developing farming. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Despite China’s success in maintaining food <\/span>self-sufficiency<\/span><\/b>, its increases in output are unable to keep pace with higher co<\/em>nsumption at a time of rapid urbanization and industrialization. One good example of this is the fact that China, the world’s top rice producer, became a net im<\/em>porter of corn, rice and wheat for the first time in 2011. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Chris Fedor, a research associate with the Center on Food Security and the Enviro<\/em>nment at Stanford University, told the Global Times that food security <\/span>threats<\/span><\/b> specific to China today are environmental, including lack of water for irrigation, and demographic. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

"The average age of a Chinese farmer is 60 and works a farm that is on average less than 1\/1000th the size of the average US farm. As these farmers grow even older, China will face an enormous, socially transformatio<\/em>nal challenge," he noted. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Advantages of going abroad <\/span><\/font><\/span><\/b><\/p>\n

 <\/font><\/span><\/p>\n

While relying on domestic supplies for <\/span>agricultural products<\/span><\/b>, analysts believe that China should also fully utilize the internatio<\/em>nal market, and are urging Chinese companies to actively explore overseas resources to ensure stable supplies of agricultural products. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

One advantage for Chinese agricultural companies investing abroad is that there are vast <\/span>surplus<\/span><\/b> areas of <\/span>uncultivated<\/span><\/b> land in other countries, which are also seeking foreign investment for joint exploration. This means relatively low farming costs and good prospects for profitable and high-yield crops. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Russia, for example, which joins the WTO this year, is set to seek more foreign investment in developing its vast Far East Areas. There are Chinese companies that saw such opportunities much earlier. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

China’s Huaxin Group, which began agricultural investment in Russia in 2004, signed another deal with Russia’s Armada Company in May to expand their joint land farming and development in Russia’s Primorskiy Kray area, which borders China’s Heilo<\/em>ngjiang Province. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

"Our company owns 40,000 hectares of land in the area at the moment, which is set to be expanded to 50,000 hectares next month," Liu Ying, from the Huaxin Group, told the Global Times. "Among the 40,000 hectares of land, 25,000 are being used for farming soybean, corn, grain and rice." <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Liu said crops are exported back to China through China’s Do<\/em>ngning land-way crossing port and some are also used for her companies’ poultry farming. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

The Australian and Chinese governments are also co<\/em>nducting a joint study to examine the policy changes needed to allow large-scale investment by Chinese agricultural companies in <\/span>undeveloped<\/span><\/b> land in northern Australia, the Australian Financial Review said last week. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

a<\/em>bout 40 Chinese companies are involved in overseas farming in more than 30 countries, with investment totaling $2.43 billion, Reuters reported. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

A bumpy road ahead <\/span><\/font><\/span><\/b><\/p>\n

 <\/font><\/span><\/p>\n

Huaxin’s experience might serve as a lesson to China’s other agricultural companies, but a series of challenges have to be dealt with first, the most urgent being the issues of <\/span>fundraising<\/span><\/b> and <\/span>insurance<\/span><\/b> services. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

The China Council for Internatio<\/em>nal Trade issued a report last year saying that the mo<\/em>ney used for overseas investment by Chinese companies is mainly borrowed from banks, suggesting a narrow source of fundraising. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Overseas agricultural <\/span>investment<\/span><\/b> also has to take into co<\/em>nsideration political risks in other countries, especially unstable ones. Agreements signed with Chinese companies by previous governments could be rejected by their <\/span>successors<\/span><\/b>. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Analysts said China can learn from other countries a<\/em>bout how to reduce risks for Chinese companies. In the US, for example, the government provides insurance services for its companies investing abroad to avert unexpected risks. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Meanwhile, since land is a scarce resource, many countries are tightening up their restrictions on procure-ment and rental of their farmland by foreign companies. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

New Zealand’s High Court in April put aside its government’s original approval for the sale of 16 farms spread across almost 8,000 hectares in the country’s North Island to China’s Shanghai Pengxin Group. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

The high court asked the New Zealand Overseas Investment Office to reco<\/em>nsider its recommendation ba<\/em>sed on "new criteria for the benefits of foreign ownership." <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Brett Rierson, director of the World Food Program China office, told the Global Times that he believed all countries should make efforts to create an open investment and trade system. <\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

"The more fluid and open systems we have, the fewer chances we have of repeating the 2007 and 2008 mistakes in which we closed our borders for food trade," he warned.<\/span><\/font><\/span><\/p>\n

 <\/font><\/span><\/p>\n

Chinese you need: <\/span><\/font><\/span><\/b><\/p>\n

 <\/font><\/span><\/p>\n

<\/em>ink1″ style=”BORDER-RIGHT: blue 1px dotted; BORDER-TOP: blue 1px dotted; BORDER-LEFT: blue 1px dotted; BORDER-BOTTOM: blue 1px dotted”>\"Words<\/a><\/em>ink2″ style=”BORDER-RIGHT: blue 1px dotted; BORDER-TOP: blue 1px dotted; BORDER-LEFT: blue 1px dotted; BORDER-BOTTOM: blue 1px dotted”><\/em>ink1″>Man eats by nature<\/span><\/font><\/span><\/b><\/span>\"Words<\/a><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u9760\u5929\u5403\u996d<\/span> (kào ti\u0101n ch\u012b fàn)<\/span><\/font><\/span><\/span><\/span><\/p>\n

<\/em>ink2″><\/em>ink1″>Sufficiency<\/span><\/font><\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u5145\u8db3<\/span> (ch\u014dng zú)<\/span><\/font><\/span><\/span><\/span><\/p>\n

<\/em>ink2″><\/em>ink1″>Agricultural<\/span><\/font><\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u519c\u4e1a\u7684<\/span> (nóng yè de)<\/span><\/font><\/span><\/span><\/span><\/p>\n

<\/em>ink2″><\/em>ink1″>Trade deficit<\/span><\/font><\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u8d38\u6613\u8d64\u5b57<\/span> (mào yì chì zì)<\/span><\/font><\/span><\/span><\/span><\/p>\n

<\/em>ink2″><\/em>ink1″>Farmland<\/span><\/font><\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u519c\u7530<\/span> (nóng tián)<\/span><\/font><\/span><\/span><\/span><\/p>\n

<\/em>ink2″><\/em>ink1″>Self-sufficiency<\/span><\/font><\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u81ea\u7ed9\u81ea\u8db3<\/span> (z<\/span><\/font><\/span><\/span><\/span><\/em>ink2″><\/em>ink1″>ì<\/span> j<\/span><\/font><\/span><\/span><\/span><\/em>ink2″><\/em>ink1″>\u01d0<\/span> z<\/span><\/font><\/span><\/span><\/span><\/em>ink2″><\/em>ink1″>ì<\/span> z<\/span><\/font><\/span><\/span><\/span><\/em>ink2″><\/em>ink1″>ú<\/span>)<\/span><\/font><\/span><\/span><\/span><\/p>\n

<\/em>ink2″><\/em>ink1″>Threat<\/span><\/font><\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u5a01\u80c1<\/span> (w\u0113i xié)<\/span><\/font><\/span><\/span><\/span><\/p>\n

<\/em>ink2″><\/em>ink1″>Agricultural product<\/span><\/font><\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u519c\u4ea7\u54c1<\/span> (n<\/span><\/font><\/span><\/span><\/span><\/em>ink2″><\/em>ink1″>ó<\/span>ng ch<\/span><\/font><\/span><\/span><\/span><\/em>ink2″><\/em>ink1″>\u01ce<\/span>n p<\/span><\/font><\/span><\/span><\/span><\/em>ink2″><\/em>ink1″>\u01d0<\/span>n)<\/span><\/font><\/span><\/span><\/span><\/p>\n

<\/em>ink2″><\/em>ink1″>Surplus<\/span><\/font><\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\uff1a<\/span><\/b><\/span><\/span><\/em>ink2″><\/em>ink1″>\u5269\u4f59<\/span> (shèng yú)<\/span><\/font><\/span><\/span><\/span><\/p>\n

Uncultivated<\/span><\/font><\/span><\/b>\uff1a<\/span><\/b>\u672a\u5f00\u57a6\u7684<\/span> (wèi k\u0101i k\u011bn de)<\/span><\/font><\/span><\/p>\n

Undeveloped<\/span><\/font><\/span><\/b>\uff1a<\/span><\/b>\u672a\u5f00\u53d1\u7684<\/span> (wèi k\u0101i f\u0101 de)<\/span><\/font><\/span><\/p>\n

Fundraising<\/span><\/font><\/span><\/b>\uff1a<\/span><\/b>\u7b79\u8d44<\/span> (chóu z\u012b)<\/span><\/font><\/span><\/p>\n

Insurance<\/span><\/font><\/span><\/b>\uff1a<\/span><\/b>\u4fdd\u9669<\/span> (b<\/span><\/font><\/span>\u01ce<\/span>o xi<\/span><\/font><\/span>\u01ce<\/span>n)<\/span><\/font><\/span><\/p>\n

Investment<\/span><\/font><\/span><\/b>\uff1a<\/span><\/b>\u6295\u8d44<\/span> (tóu z\u012b)<\/span><\/font><\/span><\/p>\n

Successor<\/span><\/font><\/span><\/b>\uff1a<\/span><\/b>\u7ee7\u4efb\u8005<\/span> (jì rèn zh\u011b)<\/span><\/font><\/span><\/p>\n<\/div>\n