China proceeds to the industrialization of agricultural sector

China proceeds to the industrialization of agricultural sector

The Chinese government announced that intends to produce in China by 2020 the 90% of the agricultural machinery that is used by the producers of the country. It is about another implementation of the program «Made in China 2025», which is being gradually presented since last May and aims to enhance the competitiveness of Chinese products with the help of new technologies. According to officials of the Chinese government, the aim has to do both with the industrial development of the country and the enhancement of agricultural production, by all possible means, in order to reduce China’s dependence on imports of agricultural products.

The government decided to focus on producing high-quality agricultural products while enhancing the agricultural machinery industry. According to the Greek embassy in Beijing nearly 75% of cultivated land in China is used for edible products. The objective of the Chinese government is the certified (according to Chinese law) organic croplands to reach about half a million hectares.

Central government decision from 2004 has been the encouragement for the amalgamation of small farms into larger aiming to reduce production cost. Therefore the government has been subsidizing the processes of consolidation of arable agricultural land, as well as purchase of new machinery. The project meets its goals given that in 2004 the total profit of agricultural machinery industry was 78 billion yuan, while in 2014 this amount rose to 400 billion yuan.

Ten at least foreign companies operate in China, which hold 40-50% of mechanical equipment used in agricultural production. It is known that these companies use more advanced technology compared with the respective Chinese.

Mr. Emmanuel Stantzos, from the office of Economic and Commercial Affairs of Greek Embassy in Beijing, stated to AgroTypos: “Major efforts a high level technology in the country corresponding to that of agricultural machinery produced by foreign companies, but this can not be overcome with low-cost configuration policies. On the other hand, foreign companies, in order to manage to maintain their presence in China, need to advance the design of innovative products which give quality characteristics to the agricultural production. That is ultimately the purpose of the Chinese Government”.

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