China to Strengthen Food Security Amid External Restrictions

Chinese agricultural stocks rose 4% to 6% on Tuesday as investors bet tariffs will curb U.S. farm imports and boost domestic producers.

The Hang Seng Index of mainland China-listed agricultural stocks rose 8.6% in April.

Yang Tingwu, deputy general manager of asset manager Tongheng Investment, said China’s retaliatory tariffs are good for the agricultural market, which is seen as strategically important amid the escalating trade war. In the long term, China needs to be self-sufficient in grain production amid growing rivalry with the U.S., experts say.

After the market closed on Monday, China unveiled a 10-year strategy to boost domestic agriculture and create a more secure food supply by 2035. The plan, reported by state media Xinhua, outlines several key strategies to strengthen food security, modernize agriculture, embrace technological innovation and promote rural revitalization. According to the plan, China aims to achieve a grain production capacity of about 700 million tons by 2027, strengthen self-sufficiency in major crops, make breakthroughs in agricultural technologies such as seeds and machinery, and enhance global competitiveness.

The plan aims to stabilize rice and wheat production, develop root crops and mixed grains suited to local conditions, and unleash the production potential of oilseeds such as rapeseed and peanuts, while expanding oil sources from tea and animal fats.

Tags: China, grain, rapeseed, food security