Agriculture and Local Governance in China
The People’s Republic of China is the most populated country in the world with almost 1.4 billion citizens. Similarly, China is the fourth largest country in terms of territory, after Russia, Canada, and the United States, with almost 10 million square kilometers. This article explores the status of the agriculture industry in some regions within China.
Agriculture and Local Governance in China
Domestically, China is composed of 33 administrative divisions: 22 provinces (this excludes Taiwan, which is claimed by Beijing as part of its territory), four municipalities, five autonomous regions, and two Special Administrative Regions (SAR). Municipalities are large cities under the direct control of the central government and these are Beijing, Tianjin, Chongqing, and Shanghai. Hong Kong and Macao are the two SAR, which are self-governing subnational subjects that were transferred to the authority of the central government of China during the end of the twentieth century by European colonial powers. Finally, the five autonomous regions are Inner Mongolia, Tibet, Xinjiang, Ningxia, and Guangxi.
Hong Kong has a population of more than 7 million citizens and a gross domestic product (GDP) of more than US$400 billion within its free market economy. Likewise, Hong Kong is one of the most modernized regions of China, by virtue of its history and special status. However, this SAR only accounts for a small amount of territory equivalent to that of a large city. Therefore, agricultural production within Hong Kong accounts for less than one percent of its total economic activity and is limited to the cultivation of vegetables and fruit as well as poultry, pork, and fishing. Most of Hong Kong’s food and other agricultural products are imported, representing a niche market of consumers with significant purchasing power within China.
Even though mainland China is Hong Kong’s main trading partner, almost half of Hong Kong imports and exports are exchanged with international markets. During 2015, the food retail sector within Hong Kong represented a market of approximately US$12 billion. Furthermore, during 2015, agricultural exports from the US into Hong Kong accounted for some US$3.8 billion. In fact, being a major Asian trading hub, Hong Kong is one of the most important importers of US-made consumer products in the world. Because of Hong Kong’s SAR status, only a handful of food and beverage products pay taxes or duties when imported from the US, these include methyl alcohol, tobacco, liquors, and hydrocarbon oil. Meanwhile, a whole range of food products does require an accompanying health certification when being imported into Hong Kong, amongst them all egg products.
On the other hand, the three provinces of northeastern China, notably Liaoning, Jilin, and Heilongjiang, are also major agricultural importers and food consumers. These three provinces of northeastern China represent almost 10% of the national GDP, with more than US$912 billion worth of economic activity during 2015. Similarly, the market that they represent accounts for approximately 110 million consumers. Big cities alongside large swaths of terrain characterize the landscape of China’s northeastern provinces whose main economic activities are heavy industry and manufacturing as well as livestock. It is important to mention that these three provinces represent the largest importers of US soybeans within China as well as the country’s largest consumers of beef and lamb.
(Read more about Fruit Markets in the People’s Republic of China)