China Increases Grain Reserve Budget by 17% to Accelerate Food Security 강화

Deterioration of US-China Relations and Response to Ukraine War
"Order for Stable Supply, Not Reduction of Available Farmland"

China is accelerating efforts to strengthen 'food security' by significantly increasing its grain stockpiling budget this year. This move is interpreted as a response to geopolitical risks such as the Ukraine war and deteriorating US-China relations.

On the 6th, Hong Kong's South China Morning Post (SCMP) reported, citing a budget report released by the Ministry of Finance, that China's grain stockpiling budget for this year amounts to 132.9 billion yuan (approximately 24.91 trillion won). This represents a 16.9% increase compared to last year (113.6 billion yuan). Compared to the related expenditure levels between 2020 and 2022, which were around 110 to 120 billion yuan with an average annual growth rate of less than 2.3%, this year's budget increase is exceptional.

China has long emphasized the goal of 'self-sufficiency' in food matters. Recently, this is seen as a response to rising political and diplomatic tensions with Western countries including the United States, and supply shortages exposed by the Ukraine war.

According to SCMP, Chinese President Xi Jinping recently met with the Jiangsu Province delegation to the National People's Congress (NPC) and stressed, "Agriculture is the foundation of modern socialist power," adding, "We must not reduce arable land, but improve its quality to ensure a stable and safe supply of grain and other major agricultural products."

Food security was also mentioned among China's 'eight priorities' announced in Premier Li Keqiang's work report on the 5th. At the opening ceremony of the NPC, Premier Li emphasized, "This year, grain production should be maintained at over 650 million tons, and the grain planting area should be stabilized." China's annual grain production has been maintained at about 660 million tons since 2015, exceeding 680 million tons in 2021 and last year. However, specific stock levels and detailed information are considered state secrets and are not disclosed.

Agricultural expert Professor Zheng Fengtian of Renmin University said, "The United States, a major food supplier, is seeking decoupling from China, and key allies such as Canada and Australia are also important grain producers," adding, "China's expansion of stockpiles will help resolve uncertainties in the global market."

The Chinese government has also introduced measures such as improving subsidy policies and raising minimum purchase prices to strengthen the foundation of food security. According to China's state-run Global Times (GT), 45.9 billion yuan in agricultural insurance subsidies will be allocated this year to producers of grains such as corn and soybeans. Additionally, the minimum purchase price for wheat will be raised, and compensation in major grain-producing areas will be increased. Citing experts, GT emphasized, "As the world's largest food consumer and importer, China must plan ahead in terms of food security and material stockpiling."

This content was produced with the assistance of AI translation services.