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GM-&-Chinese-Agriculture
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Xiao Ben Wang
11/9/2011
ENG297A
GM & Chinese Agriculture
Introduction
Agriculture has always been an important part of China. For much of China‟s
history, it has been a civilization dominated by agriculture and the peasants who creates
it. The rise and fall of imperial dynasties have been based on actions of the peasant class.
China‟s agriculture-based economy continued for thousands of years and only recently
began to change. Changes in the past 30 years of modern China have dramatically
shifted the role of agriculture in modern Chinese society. Rapid industrialization in
recent decades created new China based around cities instead of the rural area. Many
peasants have left their farming lifestyle to find work in major cities. This huge
migration of the masses creates unique for Chinese agriculture. Increasingly China‟s top
leaders must find new ways to increase agriculture production in order to feed its
economic growth engine.
Genetically modified crops have been around for decade but have not been
utilized fully due to safety and environmental concerns. The Chinese government have
invested heavily into this technology in hopes to finding answers to the woes of feeding
1.3 billion people. But are these genetically modified foods safe? How will they impact
the environment? What kind of economic forces are driving the development of GM
crops in China? What does development of genetically modified crops mean for the
common peasantry? How does genetically modified crops fit into the overall agricultural
trends of China? These are important questions that have come up in the discussion of
GM crops in China. This paper will attempt to provide some insights into answering
these important questions that will help define the future of 1/5 of the global population.
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Background
The People‟s Republic of China is a vast land with a variety of environments.
The western parts of China consist mostly of mountainous regions and dry deserts.
Grasslands cover the northern part of China. Only the southeastern region contains fertile
plains for proper agriculture. This means though China is the world‟s fourth largest
nation, it only has 7% of the world‟s cultivable land(2).
Most of the cultivable land has been used to produce stable foods for
consumption. The main food source in China is rice. Rice plantations reside mostly in
the southern region where warm winters and large amount rainfalls can sustain rice fields.
Wheat is another major food source, grown mostly in the northern regions. Traditionally
peasants raise a small amount of pigs, chickens, and plant vegetables to supplant their
diet of rice and wheat(1). Some farmers switched from agriculture to aquaculture,
converting their rice fields into ponds where they raise fish such as carp.
For most of the 5,000 years of recorded Chinese history, agriculture has been the
base of Chinese society. Most of the population resides in the countryside, tolling away
at the land to harvest enough food for the family to eat. Landlords owned most of the land
and hired families to work on the land, taking a large share of the harvest afterwards.
Many tenet farmers lived on the edge of starvation and malnutrition. The peasants
survived on rice, wild vegetables and little meat. This way of agriculture continued for
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thousands of years until the Communist party won the civil war over the Nationalist and
united mainland China under one banner.
In 1949, the People‟s Republic of China was officially established. With the
establishment of the PRC, the ruling communist party forever changed agriculture with a
massive redistribution of land. Landlords lost most of their land to peasants that once
worked for them. The land distribution gave many peasants the right to own land for the
first time. Agricultural production increased greatly in the early 1950‟s. Mao Zedong
decided to further his socialist vision by recollecting the land from the peasants and set
up communes. Communes are group work units in which large number of people work
the land. Farmers are told what to plant and with very little influence of their own on
how the land is used. The heads of the commune or higher authorities makes all the
major decisions. Their work progress is recorded as points. At the end of the harvest,
everyone gets a basic ration of food and other benefits if they gathered enough work
points. The commune system greatly limited the amount of economic incentives for
peasants to work hard to increase production. As a result, the overall amount of calories
available for daily consumption did not increase from the mid 1960‟s to the late 1970‟s.
Other important social events such as the great leap forward and the cultural revolution
also help stunt the growth of Chinese agricultural production until the late 1970‟s.
This type of agricultural system continued until the late 1970‟s. By then the Mao
Zedong passed away, and with him the Cultural Revolution. Deng Xiaopeng took over
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leadership of the People‟s Republic of China and began to implement a series of changes
that would once again change the course of Chinese agriculture.
As part of Deng‟s reform for the Chinese economy, rural residents were once
again allowed to own land in China and farm as they wish. The communes were shut
down and farm life returned to the style of early 1950‟s(7). Farmers once again can plant
crops of their choice. Most of the Chinese farm lands are owned by small families as
compared to many European and American countries where land is owned by
corporations. Recent historical events have prevented a small group of people or
corporations from obtaining a large mass of land from the farmers.
Though farmers have more control than the commune days, the government still
retains much control over the agricultural industry. Farmers are only allowed to sell
crops to government buyers. This allows the central government to keep prices low and
stockpile crops in case of emergencies. Most of the seeds farmers purchase are also
developed and sold by the government. Because of these restrictions, farmers have a
hard time earning large profits from farming traditional staple foods such as rice and
wheat. Many farmers diversified into non-traditional crops such as mushrooms, special
vegetables, aquaculture(crabs, shrimp, etc), exotic meats(ostrich) or fur. Others have left
farming all together and traveled to major cities to look for higher paying work such as
construction.
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China‟s rapid economic growth in past two decades has brought great changes to
its agricultural landscape. The economic base began to shift from agriculture to
manufacture and service. This shift of economic base occurs in many of the major cities
in China. These new coastal metroplises are the sites for most of the economic growth.
As a result, the economic growth in China spreads the wealth unevenly between the
urban and rural areas.
Many farmers have great incentives to go into the city. Price controls on major
crops limits the income farmers can get from crops. A great number of farmers left their
farm live and flock into the cities in search of a better life. Constant construction in the
major cities creates a large number of low paying jobs for low skilled workers. Mines
and factories on the outskirts of major cities also provides new opportunities for farmers
as well. Many of these farmers who left their farm life have not abandon their farms.
These workers still have immediate family members attending the farm. Those who left
went in search of higher paying jobs to supplement the low income that receive from
farming. Besides changing the agricutural work force, economic growth has also
changed the demand for food as well.
Since the end of the Cultural Revolution, the diet of the average Chinese person
changed dramatically. In thirty years, the calories supply has changed from 1,953 to
2,766 kcal per capita per day. The nearly 50% increase in calorie supply can be
attributed from improved farming techniques and reverting back to family farming for
profit. The increase in calories supplied serves as only part of the story. Where the
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calories come from is equally important. The proportion of calories supplied by rice
dropped about ten percentage points from 37% in mid 1960‟s to only 27% in mid-
1990‟s.(see chart 1) This drop of calories supplied by rice reflects the diversification of
Chinese diet.
The diet of Chinese in the 1990‟s contains more vegetables, meats, sweeteners,
alcohol and fish as well. The rise of income enable more Chinese people purchase more
fresh fruits, vegetables, sweets, alcohol and meats as well. The consumption of eggs has
increased six folds compared to the 1960‟s. Fish supply increased more then four times
in the past thirty years. Overall meat consumption has risen by 300% since the 1960‟s.
Chart one shows the overall calories supply available per capital per year. It shows the
great increase in calories and diversification of the people‟s diet in the past thirty years.
The red section demonstrates meats having the greatest increase compared to the other
food types. With the consumption increase in more valued food types, consumption of
other food types have decreased significantly. Starchy roots consumption decreased 43
percent while pulses such as peas, beans and lentils decreased 83 percent since mid
1960‟s. A shift in the diet change places greater demand on meats and vegetables and
less on basic carbohydrates. This shift in the diet could translate into greater demand for
wheat production as it takes a large amount of wheat crops to raise animal for
consumption.
Increase in animal proteins will increase demand for basic grain as feed. Chart 2
shows the increase in meat protein consumption as income increases. The diet of an
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affluent individual would require a tripling of grain demand per year due to the increase
amount of animal protein consumed. However an increase amount of animal protein
would also mean much less demand for plant protein. Chart 3 shows how an increase in
animal feed did not increase maize production overall because of a shift from maize for
human consumption to animal feed. Also unique in China, many of the animals are
raised on small farms. On these farms, people feed pigs organic wastes from vegetables
that would not be utilized otherwise. It is difficult to predict exactly how rising meat
consumption will impact grain demand, but it‟s safe to say China will need to increase
grain production to supply more animal protein as people‟s diet begin to shift.
The increase in food demands new methods to increase overall food production.
The amount of arable land in China is limited due the natural geography. Yet each acre
of land must produce more food as the Chinese population increases and a diet shift
naturally occurs as income rises. The Chinese government needs to address this issue of
food production. Increasing imports from foreign sources will only drive up the price of
wheat and make it harder for Chinese citizen to buy food. China needs methods to
produce more grain on its own lands. If the government cannot supply enough food at
reasonable prices then serious social and political problems may arise in a nation of 1.3
billion people.
Quality of life of farmers is also closely tied to agricultural production. The
wealth disparity between urban and rural area is a glaring social problem the central
government is trying to address. This problem has led to growing social tensions in the
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rural areas, which the government fears could create large violent upheavals. Already the
amount of protests in rural areas has increased significantly over the past decade. Fix
prices by the government to keep food affordable has made farming unprofitable for
many. The government searches for new ways to make farming more economically
attractive for farmers. Reducing need of fertilizer and pesticides can help alleviate this
problem. This reduction in chemicals could increase the income of farmers significantly.
Increasing the income of farmers will help to alleviate wealth disparity and social
tensions that arise due to the gap in income.
Background on Genetically modified Foods
Genetically modified foods are organisms that had their DNA sequence altered,
usually by addition of a new sequence of DNA which code for a specific protein. The
new sequence of DNA often comes from an different organism which shows promise to
improve the target organism. The new protein will alter the biological prosperities of the
organism. In crops the results could be greater resistance towards disease, faster
maturation rate, greater production, more drought resistant, more able to survive in harsh
environmental conditions or greater nutrition content.
There are significant differences between genetically modified and traditional
hybrid types. Traditional hybrid classes result from years of trial and filter to isolate
desired traits by crossing two plants of the same or related species. Crossing plants can
increase the strength of desired traits or putting multiple desired traits into one plant.
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This process is slow and somewhat random in result. Genetically modified crops have
desired traits artificially placed inside them precisely. The key difference between
genetically modified crops and hybrid strains comes from the type of trait that can be
added. Hybrid plants usually can only obtain traits already existing in the same species..
Genetically modified organism can obtain traits from unrelated species. Wheat can be
engineered to express proteins normally seen in mold that helps it fight off bacterial
infections. Vitamin-A producing genes from carrots can be inserted into rice DNA to
create a rice strain which produces vitamin A. This kind of gene insertion greatly
increases the potential of modifying an organism‟s properties. This potential also creates
controversy.
As with any new food technology, safety becomes a top concern. Many are
unconvinced by how safe GM foods are. Novel proteins in transgenic foods could create
health complications such as allergies. It‟s difficult to predict exactly what new proteins
in an organism will do to its biochemistry. Though health complications have been very
rare, past incidences of GM food triggering an allergic reaction raises concern in many
about the safety of GMs. Environmental issues are of concern as well.
Many environmental groups fear that GM crops can cross breed with wild plant
varieties to create plants that will harm the natural ecosystem. Often the new proteins
which give crops desired traits could be passed to other plants which create a so-called
“superweed”. These superweeds could disrupt the natural ecological balance. People are
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not allowed to bring foreign plants and animals to a specific country without permission
for the same reason.
The key to these issues is regulation. Careful testing and screening of new
genetically modified foods will put the risk of GM foods below other unmodified foods.
Clear labeling and carefully designed planting will prevent the GM foods from wrecking
a havoc on the local ecosystem. The concerns of GM foods have to be addressed with
government action. Science and technology can only provide tools for utilizing GM,
ultimate control remain the hands of the government that sponsors it.
GM in China
The Chinese government invests heavily into GM research. The challenges
facing the Chinese government with regard to the future of food demand and land use
will require technological advancement to increase overall crop production. GM crops
seem to offer a real practical solution to many of China‟s agricultural problems. The
Chinese government expenditures on biotechnology research makes up around 50% of
the global spending. The Chinese government planned to increase the budget for
biotechnology research by 400% from 2002 to 2005(2) Heavy investment into
biotechnology research has produced great progress in its advancement.
Chinese government has many GM crops in testing phase. By the beginning of
2002, 45 GM plants were given approval for field trials(2). Most of these plants are not
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major crops. There currently six GM crops with commercial licenses. Two of which are
for worm-resistant cotton, two for slow ripening, disease resistant tomatoes and one
license each for sweet peppers and petunias.
The worm-resistant cotton have yield good results in commercial testing. Farmers
who planted this new cotton used much less pesticide as a result of the genetic
modification. Pesticide use dropped by about 110 pounds a year.(6) A reduction of
pesticide means less environmental damage and chemical pollution due to runoffs. The
reduction of pesticide resulted in a 28% cost reduction for the farmers, meaning a savings
of more than $500 a year(6). This means more disposable income for the farmers.
Farmers planting the new GM cotton also reported health complaints from the use of
pesticide 50% less compared to farmers planting traditional cotton. Less health
complaints also means less health spending, adding more to the disposable income of the
farmers. The central government likes the benefits the GM cotton brings to the farmers.
More GM crops like this one will increase the income of farmers, make agriculture more
economically attractive and lessen the income gap between urban and rural residents.
Good example of how GM can benefit the farmers gives incentives for the government to
approve more GM strains for major staple crops.
The Chinese government is in the process of evaluating a new GM rice strain.
The rice strain is similar to the cotton strain mentioned earlier. Genetic modification has
given the rice stronger resistance to worms that naturally feed on the stem and leaves.
This rice strain now requires much less pesticide. According to a recent study published
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in Science by Chinese and American scientist shows promising results from field tests of
the new GM rice strain. Farmers turned out to use 80% less pesticide while increasing
overall production by 10%(6). Similar to the cotton strain, a reduction in pesticide use
has also reduced the number of health complaints by the farmers. The Chinese
government is under great pressure to approve of this new strain of rice as it offers a step
closer towards greater productivity of food on the same plot of land.
Approving GM rice for commercial production will set a precedent. It will be the
first major staple food approved for genetic modification. If the rice is approved as
expected, then it would open doors to other genetically modified foods. Previous genetic
modifications have been mostly on vegetables and crops meant for animal feed.
Production numbers of these vegetables pales in comparison to major staple crops for
direct human consumption such as rice and wheat. Popular genetically modified rice
could be planted and harvested on a massive scale. This rice strain could potentially
become the new food staple for millions or even billions of people. Because of the
potential mass effect of the new rice, many groups are concerned with issues over safety
regulation and environmental impact.
Greenpeace has consistently held a negative view of genetically modified foods.
It warns about the new rice strain pending approval(4). A recent undercover operation
carried out by Greenpeace discovered many government seed depots have been already
selling the genetically modified rice even though it has not been approved yet(5). The
seeds have been sold through out many southern provinces in China. It claims that the
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genetically modified seeds have been labeled as merely “anti-bug” seeds. The
government disputes that it approved the sale of these seeds for human consumption.
Either way, it appears that the Chinese government experiences difficulty controlling
seed distribution.
The genetically modified rice case highlights many important issues in China‟s
relations with genetically modified crops. China invested heavily into biotechnology,
especially in agriculture. The efforts have established China as a leader in biotechnology
research and a major player in agricultural biotechnology. The scientific foundation
needed for further research seems solid as the Chinese central government increases
spending on development. The overall technological advancement yields promising
results. The rice strain waiting approval is a result of years of research and government
support. It demonstrates that China can produce new strains of GM crops.
The increase in rice production and lowering of pesticide will bring real benefits
to the farmers themselves. Increasing production while lowering costs of all rice farmers
could mean greatly increase the income of many rural residents. As stressed before, this
could alleviate the income gap between rural and urban residents. Because rice
plantations is so abundant in China, any modest increase in income for each family would
be amplified by the millions. The possible social and economic implications can not be
underestimated.
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Government regulation is the key to proper development of genetically modified
foods in China. Government sponsorship of biotechnology research means it has the sole
power and responsibility to regulate GM crops, ensure safety and prevent environmental
damage. The government also must take on the role of education. As a result of the
historical events described earlier, most of the China‟s farm lands are in the hands of
small families harvesting for government contracts. Most of the families are not well
educated and lack basic understanding of the science behind genetically modified crops.
The government will have to educate these farmers on what GM crops are, how to best
use them, and how to lessen environmental impact.
But as seen from the illegal sales of GM rice in China, government actions needs
improvement. Since the reforms in 1978, China‟s corruption has increased along with its
economic progress. Historically it‟s been a cat & mice game between the central
government and the provincial leaders. Provincial governments often disregard or alter
orders from the central government. Local leaders often take advantage of economic
opportunities whenever they can to benefit their personal accounts at the expenses of the
people. The disparity between central orders and local actions makes it difficult for
China‟s top leaders to implement many policies. Genetically modified rice is sponsored
by the central government and part of the central policy. The seed must be distributed to
local governments and sold to the farmers individually for their benefit. There is no
corporation wholesale. Genetically modified rice exemplifies cooperation needed
between the central government and the local government. As long as local government
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do not comply with the central government‟s policy and decisions, incidents of illegal
sales of GM seeds will continue.
Genetically modified crops needs close government regulation. The crops
themselves have demonstrated great potential. The real problem here is how the
government regulate and distribute the seeds. Issues of corruption, rule of law and
economic disparity will affect the new seeds affect the farmers who need them the most.
These problems are prominent through out China. How to manage these basic problems
will determine well smoothly GM crops will integrate into the Chinese agricultural
system.
By the will of the central government, GM crops will continue to flourish in
China. The central government has through its full weight behind the development of
GM crops. This force alone will be enough to overcome all opposition to GM, whether it
be Greenpeace, private industry or minor international protests. The Chinese government
sees food security as a top priority that must be addressed. GM offers a technological
solution to how to supply enough food for the a growing population of 1.3 billion people.
The future of GM crops is bright in China. It offers vastly untapped source of
technological advancement to satisfy a desperate need for China. How well this will
unfold depends on the central government‟s policy and local government‟s
implementation of those policies.
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Chart 1
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Diets and Grain Demand
Grain Food Animal Plant
Equivalent Energy Protein Protein
kg kJ gram gram
Diet
per year per day per day per day
Vegetarian 475 10.0 8.6 66.7
Moderate 875 10.0 31.2 50.0
Affluent 1,530 11.5 63.2 28.9
Source: Luyten / Qinghua / deVries, 1996
Chart 2
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Chart 3
References:
1. Heilig, G. Can China feed itself?
The International Institute for Applied Systems Analysis
http://www.iiasa.ac.at/Research/LUC/ChinaFood/argu/trends/trend_20.htm
2. Kirby, A. Crops find Friends in China BBC News online.
http://news.bbc.co.uk/2/hi/science/nature/1778132.stm
3. Pease, R. GM rice praised in Chinese study BBC News online
http://news.bbc.co.uk/2/hi/science/nature/4495775.stm
4. Sales of GM rice spread through out China
Global News Wire - Asia Africa Intelligence Wire, June 14, 2005
5. Barboza, D. Genetically suspect rice in China. New York Times, April 18, 2005
6. Bezlova, Antoaneta, China looks to GM rice for next „Great Leap Forward‟
IPS-Inter Press Service/Global Information Network, May 24, 2005.
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Data - Percent Changes in China's Food Balan
Changes in China's Food Balance between 1964-66 and 1994-96 (in %) /*
Domestic Supply Domestic Utilization P
kg
Pro- Stock Pro- Other per
Products duction Imports Changes Exports Total Feed Seed cessing Waste Uses Food Yea
Cereals 170 207 -394 190 176 786 5 6,461 198 -2 113 2
Wheat 337 63 82,450 752 284 257 20 197 711 328 15
Rice (milled) 105 953 42,967 -48 112 1,582 2 1,151 107 -100 111 2
Maize 350 2,734 -91 1,549 383 969 45 12,425 604 -20 -2 -4
Other /1 -22 621 -172 2,683 -15 248 -59 14,392 -23 11,400 -65 -7
Starchy Roots /2 64 6,670 742 66 266 57 945 58 1,486 -1 -4
Sugarcrops /3 265 -100 100 255 10,046 179 -16 -3
Sweeteners /4 182 235 -109 -25 351 638 350 17
Pulses /5 -45 595 -74 870 -55 234 -63 -45 -73 -8
Tree nuts 175 244 195 50 198 10
Oilcrops /6 177 1,461 -250 88 199 518 20 268 207 89 77
Vegetable Oils /7 314 11,413 -100 672 501 682 439 23
Vegetables /8 383 16,000 993 379 301 433 376 18
Fruit (excl. wine) /9 520 1,442 -100 67 555 260 -6,345 485 551 29
Stimulants /10 440 438 -150 263 542 500 538 30
Spices /11 275 1,200 2,517 161 133 161 10
Alcoholic Bev. /12 2,333 3,629 2,340 5,100 2,335 1,36
Meat /13 628 -100 529 636 0 550 200 636 33
Pig Meat (Pork) 515 -100 265 523 500 200 523 27
Poultry Meat 1,020 7,350 1,019 1,018 54
Other 1,385 4,375 1,378 0 1,384 86
Offal 625 -14 642 511 260 649 32
Animal Fats /14 413 874 200 457 500 633 420 20
Milk (excl. butter) 383 2,284 1,138 423 345 411 432 22
Eggs 947 -35 980 851 939 950 987 54
Fish, Seafood /15 630 34,389 -100 2,007 790 28,983 -100 593 31
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Freshwater Fish 1,143 259 1,174 1,174 64
Other Fish & Seafood 466 34,258 2,712 668 28,983 407 20
Other Aquatic P. /16 1,058 1,052 58
Miscellaneous
Grand Total
Vegetable Products
Animal Products
