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Statistics show the value of exported agricultural
goods increased to 12.62 billion US dollars in the first
nine months, an 11.5 percent rise on a year-on-year
basis, while imports fell by 0.4 percent to 8.74 billion
US dollars, and the trade surplus rose by 52.3 percent
to 3.88 billion US dollars.
The unexpected result soothed fears for China's vulnerable
agriculture before WTO entry. But at the same time many
foreign export companies attributed this to non-tariff
barriers by Chinese government.
"The unexpected result of agricultural trade should
be due to the market rather than the government,"
said Cheng Guoqiang, an expert with the Development
Research Center under the State Council.
Cheng said that there were two main reasons why imported
grain had little impact on domestic agricultural market.
The first was the rising price of grain in the world
market caused by poor harvests in North America and
Australia. The second was the low price of grain in
the domestic market caused by a bumper grain production
in China, which even helped grain exports rise by 44.7
percent to 9.396 million tons this year.
Meanwhile, China is seeing an increase in imported
sugar, cotton and other products.
"All these prove that the market is the main factor
restraining the import of grain, not the government,"
said Cheng.
Agricultural exports also benefit from China's newly-issued
policy of supporting the agricultural industry, said
Du Zhixiong, a professor of Chinese Academy of Social
Sciences.
Many experts had thought that China would drastically
increase exports of fruits, vegetables and aquatic products
by a big margin after accession to the WTO.
"But we should not be too optimistic on the export
of China's agricultural products, which still have to
meet flourishing foreign non-tariff barriers,"
said Du.
Due to the poor competitiveness of China's agricultural
industry, many non-tariff barriers issued by developed
countries have a great influence on agricultural exports.
The China National Native Produce and Animal By-product
Imports and Exports Corporation saw its honey exports
to the European Union (EU) fall by 73.67 percent in
the first 11 months of this year because of a newly-established
EU technical barrier.
"We can not imagine these barriers will disappear
in the coming year. China must adopt an active policy
to meet this challenge, such as improving the quality
and variety of our agricultural products, and exploit
more export markets," said Du.
"Thanks to the favorable world grain market, WTO
entry did not have a big impact on China's agricultural
industry. But the outside situation is not permanent.
China's agricultural industry will face more tough challenges
in the future," said Cheng.
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