BIZCHINA / Agriculture
Foreign Investment
Updated: 2006-04-21 14:15
Introduction to Foreign Investment in the Agriculture Industry
In accordance with the Guiding List Concerning Foreign-Funded Industries,
jointly published by the State Development and Reform Commission, the
former State Trade and Economic Commission and Ministry of Foreign Trade
and Economic Cooperation (MOFTEC), foreign investors are encouraged to
invest in the following:
Transforming low- or medium-yield fields, development of green
technologies for growing vegetables (including edible mushrooms and sweet
watermelons), fruit and tea; development of new and fine breeds of fruit
trees, flowers, pastures, crops for sugar-making and other high-tech
techniques and new high-tech species (except those involving gene
transformation), building flowers plant nurseries, developing organic
fertilizer resources, planting and raising Chinese medicinal materials (
confined to equity joint ventures (JV) and contractual JVs ) and planting
natural rubber, sisal hemp and coffee.
Foreign investment is restricted in the following:
Developing and producing grain crops (including potatoes), cotton, seeds
of oil-bearing crops (with a Chinese party holding the controlling share).
Foreign investment is prohibited in the following:
Producing unique Chinese breeds.
From the beginning of the reform and opening up until the end of 1998,
there were 9,392 agricultural projects with foreign investments with a
contractual value of US$18.018 billion; 150 foreign loan projects
(involving preferential loans) with a contractual value of US$6.751
billion, accounting for 42.8 percent of the total foreign investment in
the agriculture sector; 7,915 foreign investment projects (involving
capital from Hong Kong, Macao and Taiwan) with a contractual value of
US$8 billion, accounting for 50.9 percent and 407 foreign-aid projects
with a contractual value of US$1 billion, accounting for 6.3 percent of
the total in the agricultural industry.
During the four years between 1999 and 2002, foreign-invested projects
totaled 2,047 with a contractual value of US$3.209 billion. The projects
for each year numbered 456, 484, 536 and 571 respectively, with a growth
rate of 6.53 percent in 2002 over the previous year, a growth rate of
10.74 percent in 2001 over the previous year and a growth rate of 6.14
percent in 2000 over the previous year.
The contractual value for each year was US$0.761, US$0.692, US$0.962 and
US$0.794 billion respectively, with a decreasing rate of 17.49 percent in
2002 over the previous year, a growth rate of 38.91 percent in 2001 over
the previous year and a decreasing rate of 9 percent in 2000 over the
previous year. (See chart below for reference.)
From 1999 to 2002, projects using foreign investment in the planting
industry totaled 1,420, with a contractual value of US$2.062 billion. The
projects for each year were 312, 398, 310 and 400 respectively with a
growth rate of 33.78 percent in 2002 over the previous year and a
decreasing rate of 22.11 percent in 2001 over the previous year and a
growth rate of 27.56 percent in 2000 over the previous year.
The contractual value of each year was US$0.446, US$0.551, US$0.386 and
US$0.562 billion respectively with a growth rate of 45.62 percent in 2002
over the previous year and a decreasing rate of 8.77 percent in 2001 over
the previous year; the growth rate was 23.60 percent in 2000 over the
previous year.
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� BOC's public offering attracts HK citizens
� Foreign firms look to hotel sector
� Steelmakers to reject 19% iron ore hike
� Talks start over gov't contracts
� Boeing expects B747-8 success in Asia
Today's Top News
� Smuggler suspect Lai to be returned on May 26
� US limits using of Chinese computers
� Chairman Mao portrait up for auction
� 21 killed as typhoon hits S.China
� Pay rises by 16% for State sector workers
Top Biz News
� China bans import, export of endangered species
� China closes nearly 6,000 small mines
� UK offers aid to improve life in poorest areas
� Nation's first A380 pilot to receive training
� Export of fishery workers to Taiwan resumed
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Learn Chinese
