Chinese companies are increasing their investments in foreign agricultural and food assets at a rapid pace. In fact, China’s agricultural investment abroad grew more than tenfold in less than a decade, according to a new report from USDA’s Economic Research Service titled China’s Foreign Agriculture Investments.
China’s need for agricultural resources and technology, and the country’s considerable financial clout, are driving rapid growth in Chinese investment in agriculture and food sectors abroad.
Recently, some Chinese companies and officials have shifted the thrust of their strategy from farming overseas to acquiring established agribusiness companies based in Europe, North America and Oceania.
Most of China’s foreign agricultural projects involve relatively small companies investing in neighboring countries in Southeast Asia, Russia’s Far East and Africa that have unexploited land and are often receptive to Chinese investment.
Apart from the large 2013 acquisition of Smithfield Foods, relatively little Chinese investment has targeted U.S. agriculture. Statistics for 2014 show that North America received only 2 percent of China’s farming, forestry and fishing investment, the smallest share of any continent.
A better understanding of the motivations behind these ventures and their size and impacts can help Government officials, farmers, business leaders, and other stakeholders in the United States and other countries make more informed policies and business decisions regarding these investments.
Find out more about the report here.
