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By Ye Xingqing, Research Team on “Strategic Adjustments of Agriculture in the Context of High-Level Opening-UP”, Research Department of Rural Economy, DRC

Research Report, No. 78, 2020 (Total 5822) 2020-4-14

Abstract: In the new phase of high-level opening-up, agricultural sector needs to make continuous efforts to deal with the challenges and pressure induced by China’s commitments made at the entry of WTO and the regional trade agreements signed by China, and in the meantime, China needs to face up to the challenges brought about by new measures adopted in the course of opening-up and the changing advantages in agricultural sector. In light of rules and regulations, the establishment of a new open economic system will have a profound impact on the rules, regulations, management and standards of agricultural sector, the signing of regional trade agreements will increase the pressure of the competition in agricultural market, the expansion of foreign investment will post severe challenges on agricultural seed industry and the results of WTO dispute resolution will forge ahead the reform of China’s supporting policies for agricultural development. With regard to agriculture industrial development, the rising cost and price inversion of land-intensive bulk agricultural products will bring about more severe competition challenges, and the further decline of the competitive edge of labor-intensive agricultural products in export market will shrink the export volume of China’s agricultural products. As a result, the weakened agricultural trade competitive edge will add to China’s agricultural dependency on imported agricultural products. In conclusion, it is necessary to reshape China’s agricultural development strategy and policy arrangements.

Keywords: agriculture, rules of economy and trade, industrial advantage, opening-up