Chinese Ministry of Agriculture and Rural Affairs: Chinese soybean market to still be import-dominated

Han Changfu, the Minister of the Ministry of Agriculture and Rural Affairs, said on February 20 that the import-relying soybean market will not change, although China is working on the restoration and development of its own soybean production.
 

A soybean revitalization plan is addressed in the No. 1 Document of the Central Government issued this year. Can you share with us a few more details about this plan? What is the goal of increases of yield and planting area?
 

The soybean revitalization plan is an important measure to make adjustments to the agricultural supply side structure, particularly the crop planting structure. Our focus will be on the following aspects: 1) China’s soybean planting area needs to be restored and stabilized, which is planned to be mostly distributed in Northeast China and Bohai Rim, where farmers will be guided to expand soybean plantation; 2) We will make joint efforts to speed up research and development of high-quality and high-yield variety breeding to enhance soybean adaptability, yield and quality properties; 3) A number of new soybean enterprises and cooperative organizations will be established in combination with the development of the processing industry to improve soybean business operations in a better organized manner. Therefore, the soybean revitalization plan aims at providing technical, organizational and policy support.
 

As far as the China-US trade conflict is concerned, China has approved the import of food grain from lots of new sources after the conflict arose. The question is, after the Sino-US trade consultation, will this diversified import policy continue? 
 

China imports soybeans from the US, which accounts for one third of China’s total imports. Due to the trade friction last year, soybeans imported from the US have somewhat reduced. China’s demand for soybeans is about 110 million tons every year, while China’s soybean production volume is 16 million tons, which means that 90% needs to be imported. China will expand its economic opening to the outside world including the agricultural sector, so that we can make good use of both domestic and international markets and resources. China’s door to soybeans is open. The source of import depends on the market, the market will decide, and companies will decide. We follow economic rules. The Chinese market is open to the US as well.
 

Changfu finally said that China is a place of origin of soybeans, which has its own features and advantages. Therefore, China will certainly develop its own soybean industry in a proper way according to its resource characteristics so as to fulfill consumers’ needs. China will restore and develop soybean production, but the import-relying soybean market status will not change. As said, China produces 16 million tons of soybeans in a year, but the demand is 110 million tons. Every year, 90 million tons need to be imported. China will surely play a major role in the international soybean trade and continue its diversified import policy. China and the US are certainly important partners to each other.