China Raises Grain Output Target as Trade Tensions Escalate

The target was revealed as the National People’s Congress convened for its annual gathering, and comes as trade tensions rise between China and the US, a major grain supplier to the Asian country.

Beijing said on Tuesday it will impose 10-15% additional duties on American crops including soybeans, corn and wheat, in retaliation to new tariffs from US President Donald Trump. It has also suspended soybean imports from three US entities and inward shipments of American timber.

“All localities must shoulder their share of responsibility for ensuring China’s food security, and make concerted efforts to have a firmer grip on the rice bowl,” said Chinese Premier Li Qiang, during the opening session of the NPC.

China will keep grain acreage stable and focus on improving crop yield and quality. It will build on the recent increase in soybean planting, and explore expanding cultivation of other oilseed crops, Li said. It will also advance construction of storage facilities for grain, cotton, sugar, meat, and fertilizers.

The country will also strengthen management of hog production capacity and pork reserves, and help develop the cattle industry, the National Development and Reform Commission said in the report.

The Asian nation has sought to boost production of domestic soybeans and other oilseeds, to cut reliance on foreign, especially American, supplies, after the Sino-US trade war during Trump’s first term entangled the crop and slashed US sales. As part of the same push, China said it will also continue to cut soymeal use and seek alternatives to replace the protein ingredient in feed, the country’s state planner said in a separate report on Wednesday, reiterating an initiative launched before.

China produced 706.5 million tons of grain in 2024, up 1.6% from the previous year. Domestic prices are near multi-year lows on ample supplies and weak demand, prompting the government to limit imports from overseas to protect farmers’ profits.