10. Utilization of foreign capital and international cooperation in agricultural sector

10.1 Cooperation and exchanges in agricultural science and technology.  Since 1978, China has established a long-term and stable cooperation relationship with over 140 counties, major international organizations, regional organizations as well as international agricultural institutions. Thanks to such a cooperation relationship, agricultural exchange and cooperation have covered a wide range of fields, which has facilitated frequent exchange of scientists and technical people. Andover one hundred thousands of improved varieties and breedshave been introduced into thecountry, covering grain, cotton, oil crops, fruit, vegetables, pasture plants, livestock, poultry and aquatic. All this has facilitated to improve our varieties and breeds, and injected a new energy into domestic agricultural production. Many advanced farming practices and techniques are applied widely in the country such as balanced fertilization, plastic film mulching, conservation farming, water-saving irrigation, protected agriculture and integrated pest management, which has made remarkable economic and social benefits. 　　

10.2 Utilization of foreign capital in agriculture. Starting from scratch, China has developed various channels and forms for introducing foreign capital to agriculture since reform and opening up to the outside world. In 2005, the total number of projects with foreign capital was up to 13 064, and the total agreed amount of foreign capital reached US$ 24.972 billion. Foreign capital introduced through various channels has not only made up the shortage in domestic investment in agriculture, but has also brought along the growth of the latter. It has also played a very important role in alleviating poverty, accelerating introduction of advanced technologies and improved varieties and breeds from other countries, and promoting the process of the vertical integration in agriculture.

Foreign Capital Introduced into Agriculture in China

10.3 Regional cooperation in agriculture. With a faster economic globalization, regional agricultural cooperation is of more dynamic. In addition to strengthening the multilateral and bilateral agricultural cooperation, the government has actively participated in regional agricultural cooperation. Currently, China has launched an overall agricultural cooperation with the Association of Southeast Asian Nations (ASEAN) and continued to enhance regional agricultural cooperation with Africa and the European Union (EU). In recent years, MOA has financed agro-technical training courses and seminars for ASEAN nations and countries in Africa and Eastern Europe, almost one thousand agriculture technicians have been seconded to these countries, which has promoted regional exchange of agricultural policies and technologies. In 2005, MOA successfully organized the Ministerial Conference for the Asia HPAI Control Cooperation. At the conference, China jointed 16 Asian countries to launch the Kunming Initiative on Avian Influenza Control in Asia. In 2006, MOA and the Directorate General for Agriculture and Rural Development of the European Union Commission jointly held in Brussels the First China-EU Dialogue Meeting on Agriculture and Rural Development, which has provided the foundation for their future cooperation in all round way. 　

10.4 Agriculture goes global.  The strategy of agriculture “going global” is an important measure adopted by China’ agriculture in response to economic globalization, and one of the major contents of international cooperation in agriculture. In recent years, MOA has vigorously promoted agriculture going global through establishing agricultural technical centres and demonstration farms as well as enterprises in some other countries, seconding technicians, and promoting agricultural exports. Working with its partners, China has assisted to establish China-Philippines Agricultural Technical Centre, Cambodia Herd Boar Demonstration Farm, Laos Rural Household Biogas Project, Indonesia Hybrid Rice Demonstration Project, Russia Agricultural Technical Demonstration Farm in Far-East Region, and Venezuela Sisal Planting and Processing Demonstration Project. In addition, China has taken an active part in the South-South Cooperation under the framework of the Special Programme for Food Security (SPFS) of the Food and Agriculture Organization of the United Nations, and seconded several hundreds of technicians to some African countries in the past few years, which has opened a new channel for agriculture going global. 　

10.5 International agricultural trade. From 1980 to 2006, China’s agricultural trade with other countries has made a rapid development. Currently, China is the fifth largest agricultural exporter and the fourth largest agricultural importer in the world. In 2006, the total value of agricultural exports and imports was up to US$ 63.5 billion, an increase of US$ 51.9 billion or 447.4 percent up from 1980, with trade deficit of over US$ 660 million. As for the total value of agricultural exports, it was up to US$ 31.42 billion, an increase of US$ 26.59 billion or 550.5 percent. And for agricultural imports, it reached US$ 32.08 billion, an increase of US$ 25.32 billion or 374.6 percent. Exported items exceeding imported ones were vegetables (favour balance of US$ 5.33 billion), aquatic products (favour balance of US$ 5.06 billion), fruit (favour balance of US$ 1.72 billion) and tea (favour balance of US$ 0.54 billion); and imported items exceeding exported ones were oilseeds (trade deficit of US$ 7.05 billion), cotton (trade deficit of US$ 4.90 billion), edible vegetable oil (trade deficit of US$ 3.20 billion) and livestock products (trade deficit of US$ 0.83 billion).