China issues guideline to encourage investment in agriculture sector

China issues guideline to encourage investment in agriculture sector

Staff Writer
Staff Writer
Pinduoduo Content Team
May 11, 2021

China issued a guideline to encourage social investment in 13 agricultural and rural sectors, as part of the country’s efforts to boost the rural economy and spur agricultural modernization.

The sectors include modern planting and breeding, farm produce processing and circulation, agricultural technological innovation, smart agriculture, nurturing agricultural talents and rural infrastructure, said the guideline jointly released by the Ministry of Agriculture and Rural Affairs and the National Administration for Rural Vitalization.

Last year, China completed an eight-year drive to eradicate extreme poverty in the world’s most populous nation, a key goal of the previous Five-Year Plan. The priority in rural work has now shifted to modernizing the rural economy, with tasks such as building infrastructure for information technology, promoting agricultural technologies and building modern breeding systems.

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“The depth, extensiveness and difficulty of implementing a comprehensive rural revitalization strategy is no less than poverty eradication,” said the guideline. “Social capital is an important supporting force to sweepingly promote rural vitalization and accelerate the modernization of agriculture and rural areas, and it is necessary to boost the leverage of policy guidance to expand effective investment in agriculture and rural areas.”

Efforts should also be made to create new approaches to investment, build platforms for cooperation and improve the environment of investment, according to the guideline.

Stressing the advancement of rural vitalization, Liu Huanxin, vice minister of agriculture and rural affairs, urged rural and agricultural authorities to cooperate with financial institutions to provide better financial services, according to the Xinhua News Agency.

Along with the country's policy banks, the ministry and the administration are also exploring financing modes for projects aimed at improving the rural living environment, Liu said at a press briefing.

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Below are some of the targeted areas:

Modern Planting and Breeding

  • Encourage social capital to vigorously develop silage corn, high-yielding and high-quality alfalfa and other forage production;
  • Stabilize the production capacity of hogs, increase investment in processing of hogs, and accelerate the formation of an industrial framework streamlining breeding, slaughtering and processing;
  • Encourage social capital to build high-quality milk source base, upgrade small and medium-sized dairy farms to build a bigger and stronger national dairy industry.

Modern Seed Industry

  • Encourage social capital to invest in innovative seed enterprises, promote the deep integration of technology and business, support leading seed enterprises to improve the commercial breeding system;
  • Support social capital to participate in the national Nanfan breeding base (Hainan Province) construction, accelerate building and upgrading of national seed bases in Gansu and Sichuan Provinces.

Farm Produce Processing and Circulation

  • Encourage social capital to join family farms, farmers' cooperatives to jointly carry out the construction of agricultural storage and cold chain logistics system;
  • Encourage the construction of low-temperature distribution centers to improve the efficiency and quality of cold chain logistics services.

Smart Agriculture

  • Encourage social capital to participate in the construction of intelligent agriculture, promote agricultural remote sensing, Internet of Things, 5G, artificial intelligence, blockchain and other applications;
  • Encourage “Internet + agriculture” to sell farm produce to cities; Promote online sales of high-quality agricultural products to better match agricultural production and market demand.
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