What can Europe learn from agricultural policy in China? An analysis from different perspectives
Agriculture is an essential part of social development and economic growth in both Europe and China. Not only does it contribute to food security and improving the quality of life of the population, but it also has significant impacts on the environment, resource use and international cooperation. Faced with global challenges such as climate change, population increase, urbanization, resource scarcity and the pandemic, both regions need to adapt and reform their agricultural sectors to promote sustainable, efficient and innovative agriculture.
In this context, it is useful to draw a comparison between European and Chinese agricultural policies in order to identify the differences, the similarities and the potential learning opportunities. This article highlights three aspects of China's agricultural policy that may be of particular interest to Europe: modernization and mechanization, digitalization and green development, and domestic demand and consumption. For each aspect, the goals, measures, results and challenges of Chinese policy are described and compared with the European situation. Finally, some conclusions and recommendations for deeper cooperation between Europe and China in the agricultural sector are formulated.
Modernization and mechanization
The modernization and mechanization of agriculture is a key goal of Chinese policy to improve the productivity, quality and competitiveness of the agricultural sector. China has experienced a profound structural change in agriculture in recent decades, characterized by a large number of small and inefficient farms to an increasing concentration and scaling of production. This process has been supported by a number of policy measures such as:
- The promotion of large companies that have larger areas, better equipment, higher capacity and a stronger market orientation. China has promoted various forms of large-scale enterprises, such as family farms, cooperatives, agricultural enterprises and agricultural industrial parks. These farms account for a higher share of agricultural production, particularly livestock products, fruits and vegetables, and contribute to improving income distribution, employment and social security.
- Improving infrastructure essential for increasing production efficiency, reducing losses, improving quality and opening up new markets. China has invested heavily in the construction and maintenance of irrigation systems, warehouses, cold chains, roads, railways, ports and airports. China has also promoted the development of rural settlements, the provision of public services and the improvement of the living conditions of rural people.
- The provision of loans and subsidies necessary to finance the modernization and mechanization of agriculture. China has established various financial instruments to facilitate farmers' and agricultural enterprises' access to credit, such as the agricultural bank, agricultural credit cooperatives, agricultural insurance funds and agricultural development funds. China has also introduced various subsidy programs to support the purchase of agricultural machinery, fertilizers, seeds, pesticides and other inputs.
- The introduction of agricultural insurance that helps reduce the risks of farmers and agricultural companies and increases their adaptability to unpredictable events such as natural disasters, diseases, pests and market fluctuations. China has built a comprehensive agricultural insurance system, including various types of insurance, such as crop insurance, livestock insurance, forestry insurance, fisheries insurance and income insurance. China has also promoted the participation of private insurance companies and the development of innovative insurance products.
- Strengthening agricultural research and innovation, which is crucial for the development of new technologies, new varieties, new products and new business models. China has increased investment in agricultural research and development, enhanced cooperation among research institutes, universities, enterprises and farmers, promoted the application of scientific knowledge and technical advice, and strengthened intellectual property rights.
These policies have led to a significant improvement in agricultural mechanization in China. According to the China country report, the number of agricultural machinery in China more than doubled from 2000 to 2019, and the mechanization rate of crop production reached 71 percent in 2019. Mechanization has contributed to increasing yields, reducing labor costs, improving quality and reducing environmental impact. Mechanization has also helped reduce dependence on the shrinking and aging agricultural population, which fell from 490 million in 2000 to 260 million in 2019.
Europe also has a highly developed and mechanized agricultural sector, but it faces various challenges such as maintaining competitiveness, managing structural change, improving environmental performance and promoting social inclusion. Europe could learn from China's experience in agricultural modernization and mechanization to improve its own policies, such as:
- Adapting the agricultural structure to market requirements and consumer preferences by promoting diversification, specialization, integration and cooperation of farms. Europe could learn from China's various forms of large-scale enterprises, which have higher efficiency, better quality and a stronger market orientation, while maintaining the diversity, flexibility and autonomy of small and medium-sized enterprises.
- Improving infrastructure essential for increasing production efficiency, reducing losses, improving quality and opening up new markets. Europe could benefit from China's massive investments in the construction and maintenance of irrigation systems, warehouses, cold chains, roads, railways, ports and airports, while promoting environmental sustainability, energy efficiency and the circular economy.
- The provision of loans and subsidies necessary to finance the modernization and mechanization of agriculture. Europe could learn from China's various financial instruments that facilitate farmers' and agricultural companies' access to credit, such as the agricultural bank, agricultural credit cooperatives, agricultural insurance funds and agricultural development funds. Europe could also review the effectiveness and targeting of its subsidy programs to support the purchase of agricultural machinery, fertilizers, seeds, pesticides and other inputs, while ensuring environmental standards, animal health and welfare.
- The introduction of agricultural insurance that helps reduce the risks of farmers and agricultural companies and increases their adaptability to unpredictable events such as natural disasters, diseases, pests and market fluctuations. Europe could learn from China's comprehensive agricultural insurance system, which includes various types of insurance, such as crop insurance, livestock insurance, forestry insurance, fisheries insurance and income insurance. Europe could also encourage the participation of private insurance companies and the development of innovative insurance products tailored to the specific needs and preferences of farmers and agricultural companies.
- Strengthening agricultural research and innovation, which is crucial for the development of new technologies, new varieties, new products and new business models. Europe could benefit from China's increased investment in agricultural research and development, improve cooperation between research institutes, universities, companies and farmers, promote the application of scientific knowledge and technical advice, and strengthen intellectual property rights.
Digitalization and green development
- The digitalization and green development of agriculture is another important goal of Chinese policy to improve the sustainability, efficiency and innovation of the agricultural sector. China is leveraging the capabilities of digital technologies such as the Internet of Things, artificial intelligence, blockchain, cloud computing and big data to improve agricultural production, management, logistics, processing, trade and services to optimize. China also promotes the development of organic agriculture, which aims to conserve natural resources, reduce pollution, improve food quality and safety, and increase farmers' income. Some examples of policy measures in this area are:
- Promoting smart agriculture, which includes the use of digital technologies to monitor, control and optimize agricultural production. China has developed various smart agriculture platforms and applications, such as the National Smart Agriculture Platform, the National Agricultural Data Platform, the National Agricultural Cloud Platform, the National Agricultural Blockchain Platform, and the National Agricultural Data Platform. AI. These platforms and applications enable farmers and agricultural companies to access real-time data and information, adjust production according to weather, soil and market conditions, improve resource use and environmental performance, and ensure product quality and traceability .
- The promotion of organic farming, which includes the cultivation of plants and the keeping of animals, taking into account ecological principles and biological diversity. China has established various standards and certifications for organic agriculture, such as the National Standard for Organic Agriculture, the National Standard for Organic Animal Husbandry, the National Standard for Organic Aquaculture and the National Standard for Organic Processing. China has also provided various incentives and support measures for organic agriculture, such as the organic conversion subsidy, the organic certification subsidy, the organic marketing subsidy and the organic education subsidy.
- Promoting green development, which includes reducing greenhouse gas emissions, improving energy efficiency, promoting renewable energy, reducing waste generation and promoting the circular economy in agriculture. China has set a goal of reducing emissions per unit of gross agricultural domestic product by 18 percent by 2030 and increasing the area of organic farming to 30 percent of total agricultural area. China has also taken various measures to improve energy efficiency and the use of renewable energy in agriculture, such as installing solar panels, using biogas and converting agricultural waste into energy. China has also promoted the development of the circular economy in agriculture, which includes the reuse, recycling and value creation of agricultural resources and waste.
- These policy measures have led to a significant improvement in the digitalization and green development of agriculture in China. According to the China country report, from 2015 to 2019, the number of users of digital platforms and applications for agriculture increased from 150 million to 400 million, and the number of farms applying smart agriculture reached 1.8 million in 2019. Digitalization has contributed to increasing production efficiency, improving quality and safety, reducing costs and increasing incomes. Organic farming has also developed rapidly, and the area of organic farming reached 8.1 million hectares in 2019, accounting for 6 percent of the total agricultural area. Green development has contributed to reducing greenhouse gas emissions, improving energy efficiency, increasing the use of renewable energy and reducing waste generation.
- Europe is also a leader in the digitalization and green development of agriculture, which are among European policy priorities such as the European Green Deal, the Common Agricultural Policy and the Farm to Fork Strategy. However, Europe faces various challenges, such as bridging the digital divide, ensuring data security and privacy, increasing organic farming and addressing the social and economic consequences of the green transition. Europe could benefit from China's digitalization and green agricultural development efforts to improve its own policies, such as:
- Promoting smart agriculture, which includes the use of digital technologies to monitor, control and optimize agricultural production. Europe could learn from China's various smart agriculture platforms and applications that enable farmers and agricultural companies to access real-time data and information, adjust production according to weather, soil and market conditions, improve resource utilization and environmental performance, and ensure the quality and traceability of the products. Europe could also promote the development and deployment of innovative digital solutions for agriculture tailored to the specific needs and preferences of European farmers and consumers.
- The promotion of organic farming, which includes the cultivation of plants and the keeping of animals, taking into account ecological principles and biological diversity. Europe could learn from China's various organic farming standards and certifications that ensure the quality and safety of organic products, while improving the harmonization and recognition of European standards and certifications in the Chinese market. Europe could also provide the various incentives and support measures for organic farming that promote the conversion, certification, marketing and education of organic farmers and consumers, while increasing the competitiveness and profitability of organic farming.
- Promoting green development, which includes reducing greenhouse gas emissions, improving energy efficiency, promoting renewable energy, reducing waste generation and promoting the circular economy in agriculture. Europe could learn from China's green agricultural development objectives and policies, which seek to adapt to climate change, conserve natural resources, improve food quality and safety, and increase farmers' income, while addressing social and economic impacts of the green transition. Europe could also promote the development and deployment of innovative green agricultural solutions tailored to the specific needs and preferences of European farmers and consumers.
Domestic demand and consumption
- Domestic demand and consumption of agricultural products is another important aspect of China's agricultural policy that influences the development and growth of the agricultural sector. China has experienced a significant increase in demand for agricultural products in recent years, driven by population growth, urbanization, rising incomes and changing dietary habits. China is the world's largest importer of agricultural products, increasing its imports from $14.1 billion to $133.1 billion from 2000 to 2019. At the same time, China has also increased its exports of agricultural products, particularly higher value-added processed products. China has also sought to strengthen its domestic demand by promoting rural development, poverty alleviation, food supply chains, e-commerce platforms and consumer rights. Some examples of policy measures in this area are:
- The promotion of rural development, which includes improving the living conditions, infrastructure, public services and social security of the rural population. China has implemented various rural development policies and programs, such as the Rural Vitalization Strategy, Rural Revitalization Planning, Rural Revitalization Financing and Rural Revitalization Assessment. These policies and programs aim to promote rural economy, rural culture, rural ecology, rural society and rural administration, and to reduce the gap between urban and rural areas.
- Combating poverty, which includes improving the income, employment, education, health and housing of the rural poor. China has implemented various poverty alleviation strategies and programs, such as Targeted Poverty Alleviation, Precision Poverty Alleviation, Industrial Poverty Alleviation, Ecological Poverty Alleviation and Digital Poverty Alleviation. These policies and programs aim to identify the rural poor, register the rural poor households, support the rural poor individuals, utilize the rural poor resources and monitor the rural poor outcomes, and reduce absolute poverty by 2020 remove.
- Improving food supply chains, which includes improving the production, storage, transportation, processing, distribution and sale of food. China has implemented various policies and programs to improve food supply chains, such as the National Food Safety Strategy, the National Food Reserve Policy, the National Food Quality and Safety Supervision, the National Food Standardization and the National Food Inspection. These policies and programs aim to increase food production, reduce food losses, ensure food quality and safety, improve food diversity and nutrients, and eliminate food waste.
- The promotion of e-commerce platforms, which includes the use of the Internet and digital technologies to facilitate trade and consumption of agricultural products. China has implemented various policies and programs to promote e-commerce platforms, such as the National E-commerce Development Strategy, the National E-commerce Regulation, the National E-commerce Promotion, the National E-commerce Innovation and the National E-Commerce Training. These policies and programs aim to improve e-commerce infrastructure, regulate e-commerce platforms, support e-commerce businesses, innovate e-commerce models and e-commerce skills to increase.
- Strengthening consumer rights, which includes improving the protection, information, education and participation of consumers of agricultural products. China has implemented various policies and programs to strengthen consumer rights, such as the National Consumer Protection Strategy, the National Consumer Protection Legislation, the National Consumer Protection Monitoring, the National Consumer Protection Education and the National Consumer Protection Organization. These policies and programs aim to protect consumer interests, improve consumer information, promote consumer education, address consumer complaints and strengthen consumer advocacy.
These policy measures have led to a significant increase in domestic demand and consumption of agricultural products in China. According to the China country report, the consumption of agricultural products per capita increased significantly from 2000 to 2019, such as the consumption of grains from 334 kg to 375 kg, the consumption of meat from 44 kg to 64 kg, the consumption of milk from 9 kg to 36 kg and the consumption of fruit from 40 kg to 71 kg. Domestic demand and consumption have contributed to increased production, income, employment and value added in agriculture. Domestic demand and consumption have also contributed to improvements in food security, diet quality, diet diversity and nutritional health.
Europe is also an important market for agricultural products, influenced by both domestic and foreign demand and consumption. However, Europe faces various challenges, such as maintaining market position, adapting to consumer preferences, improving food quality and safety and promoting healthy eating. Europe could benefit from China's growing and diversified domestic demand and consumption of agricultural products to improve its own policies, such as:
- Deepening trade relations with China, which includes increasing trade volume, improving market access conditions, reducing trade barriers, increasing trade diversity and promoting trade cooperation. Europe could benefit from China's increasing demand for high-quality, safe and sustainable agricultural products that meet European standards and values, while ensuring the competitiveness, quality and safety of European agricultural products in the Chinese market.
- Improving quality standards and brand awareness, which includes improving production, processing and packaging standards, improving certification and control systems, improving marketing and advertising strategies, improving consumer information and education and improving consumer loyalty. Europe could benefit from China's increasing interest in high-quality, safe and sustainable agricultural products that reflect European traditions, culture, geography and innovation, while better understanding Chinese consumer preferences, expectations and feedback.
- Promoting healthy eating, promoting the consumption of healthy, balanced and diverse foods, promoting the consumption of local, seasonal and organic foods, promoting the consumption of plant-based, high-protein and low-fat foods, promoting the consumption of foods with high nutritional value and low calorie content and promoting the consumption of foods low in salt, sugar and fat. Europe could benefit from China's increasing awareness of healthy eating that improves consumers' health, well-being and quality of life, while improving food security, diet quality, diet diversity and nutritional health in Europe.
Conclusions and recommendations
Agricultural policy in China has some interesting aspects that could be relevant to Europe, such as modernization and mechanization, digitalization and green development, and domestic demand and consumption. These aspects reflect the different challenges, goals and approaches that influence the development and growth of the agricultural sector in both regions. Europe could benefit from increased dialogue and cooperation with China in these areas to learn from each other, address common challenges and achieve mutual benefits. Some possible recommendations for such collaboration are:
- Promoting the exchange of experiences, knowledge, technologies and innovations between European and Chinese actors in the agricultural sector, such as governments, research institutes, universities, companies, associations and farmers. This could be done by organizing conferences, seminars, workshops, study tours, exhibitions, trade fairs and other events that promote the flow of information, understanding, trust and partnership between the various actors.
- Promoting joint research and development of new technologies, new varieties, new products and new business models relevant to improving the sustainability, efficiency and innovation of agriculture in both regions. This could be done through the establishment of joint research and development centers, the implementation of joint research and development projects, the provision of joint research and development funds, the facilitation of technology transfer and the strengthening of intellectual property protection, the scientific cooperation promote technological cooperation, innovation cooperation and value creation cooperation between the various actors.
- To promote the joint development and implementation of common standards, certifications, regulations and policies relevant to improving the quality, safety, traceability and sustainability of agricultural products in both regions. This could be through the harmonization and recognition of existing standards, certifications, regulations and guidelines, the development and introduction of new standards, certifications, regulations and guidelines, the improvement of monitoring and control systems, the improvement of information and education systems and the Improvement of complaint and dispute resolution systems that promote quality cooperation, safety cooperation, traceability cooperation and sustainability cooperation between the different actors.
- Promoting joint promotion and support to farmers and agricultural businesses relevant to improving agricultural productivity, competitiveness, incomes and employment in both regions. This could be done through the provision of credit, subsidies, insurance, tax concessions, technical advice, marketing support, training, education and other services that promote productivity cooperation, competitiveness cooperation, income cooperation and employment cooperation between the various actors.
- Promote joint consumer awareness and mobilization relevant to improving food security, diet quality, diet diversity and nutritional health in both regions. This could be done through the provision of information, education, promotion, labeling, tasting, feedback and other services that promote nutrition cooperation, nutrition quality cooperation, dietary diversity cooperation and nutritional health cooperation between the different actors.
- In summary, China's agricultural policy has some interesting aspects that could be relevant to Europe, such as modernization and mechanization, digitalization and green development, and domestic demand and consumption. These aspects reflect the different challenges, goals and approaches that influence the development and growth of the agricultural sector in both regions. Europe could benefit from increased dialogue and cooperation with China in these areas to learn from each other, address common challenges and achieve mutual benefits. Some possible recommendations for such collaboration are:
- Promoting the exchange of experiences, knowledge, technologies and innovations between European and Chinese actors in the agricultural sector, such as governments, research institutes, universities, companies, associations and farmers.
- Promoting joint research and development of new technologies, new varieties, new products and new business models relevant to improving the sustainability, efficiency and innovation of agriculture in both regions.
- To promote the joint development and implementation of common standards, certifications, regulations and policies relevant to improving the quality, safety, traceability and sustainability of agricultural products in both regions.
- Promoting joint promotion and support to farmers and agricultural businesses relevant to improving agricultural productivity, competitiveness, incomes and employment in both regions.
- Promote joint consumer awareness and mobilization relevant to improving food security, diet quality, diet diversity and nutritional health in both regions.
- This article is based on the information from the China country report published by the Organization for Economic Co-operation and Development (OECD). The China country report provides a comprehensive overview of the economic, social and environmental situation in China, including agricultural policy. The China country report can be viewed here.
