China
Climate change threatens China’s food security
Authors: Yu Sheng and Siying Jia, Peking University
China has achieved significant progress in ensuring food security through institutional reforms, technological advancements, and increased investment in agricultural infrastructure. From 1978 to 2022, agricultural output grew at a rate of 4.5% per year, exceeding population growth by more than four times. In 2022, China experienced a historical high in grain output, reaching 686.53 million tonnes, thereby strengthening its domestic food supply.
However, China still faces challenges in ensuring long-term food security due to increasing demand for high-value and high-protein products, limited land and water supply, issues with small farms, an aging rural population, and extreme weather events caused by climate change. Recent studies have shown that extreme rainfall has led to an 8% decrease in China’s rice crop yields over the past two decades, exacerbating concerns about food insecurity caused by pest shocks, droughts, and rising carbon emissions.
To address the challenges posed by climate change, the Chinese government has implemented three sets of measures. These measures involve improving irrigation systems, agricultural and transportation infrastructure, and promoting the adoption of climate-resilient crop varieties. The government has also invested in agricultural research and technological innovation, as well as strengthening the insurance system for agricultural production.
China has implemented public policies to transition towards a sustainable agricultural production system. In 2015, the strategy of ‘hiding grain in the ground and hiding grain in technology’ was introduced, focusing on capacity building rather than solely on output targets. Since implementing the ‘Action Plan for Zero-Growth in Fertilizer Use’ in 2015, the use of fertilizers and chemicals in agriculture has decreased by one third.
As part of its 14th Five Year Plan, China has launched a new initiative to increase domestic grain production by 50 million tonnes. This initiative includes measures to enhance farmers’ climate resilience, such as strengthening disaster prevention and mitigation capabilities, utilizing germplasm resources, implementing full-cost insurance for grain producers, and preventing non-agricultural use of arable land.
China is also considering diversifying its food sources by increasing imports of feed grains and oil crops. In 2022, China imported significant quantities of soybeans and maize to supplement its grain consumption. This strategy helps mitigate potential food shortages caused by climate-related disruptions and enhances domestic grain self-sufficiency.
Authors: Yu Sheng and Siying Jia, Peking University
Over the past four decades, China has made significant achievements in maintaining food security through institutional reforms, technological progress and increased investment in public agricultural infrastructure. Between 1978 and 2022, the total quantity of agricultural output grew at the rate of 4.5 per cent per year — more than four times the population growth over the same period. In 2022, China’s total grain output reached a historical high of 686.53 million tonnes, substantially boosting its domestic food supply.
But China still faces considerable challenges in ensuring food security, with demand for high-value and high-protein products increasing along with per capita income. Constraints in land and water supply, issues with small farms, an aging rural population and extreme weather events caused by climate change can disrupt food production and distribution. Recent studies show that extreme rainfall has led to an 8 per cent decrease in China’s rice crop yields over the past two decades, exacerbating food insecurity concerns caused by frequent pest shocks, severe droughts and rising carbon emissions.
To tackle the challenges arising from climate change, the Chinese government has implemented three sets of measures. These measures involve improving irrigation systems and other agricultural and transportation infrastructure. This includes initiatives such as channelling water from the south to the north and constructing high-standard farmland and water conservancy facilities. The government has also invested in agricultural research and technological innovation, promoting the adoption of climate-resilient crop varieties. Additionally, efforts have been made to strengthen the insurance system for agricultural production.
China has instituted public policies to actively foster the transition towards a sustainable agricultural production system. In 2015, China introduced the strategy of ‘hiding grain in the ground and hiding grain in technology’, emphasising the importance of capacity building rather than solely focusing on output targets in grain production. Since implementing the ‘Action Plan for Zero-Growth in Fertilizer Use’ in 2015, the use of fertilisers and chemicals in agriculture has reduced by one third.
As part of its 14th Five Year Plan, China has launched a new initiative aimed at increasing domestic grain production by an additional 50 million tonnes. Several new policies have been implemented in conjunction with this campaign to enhance farmers’ climate resilience. These measures include strengthening disaster prevention and mitigation capabilities by adopting ICT technologies, better utilising germplasm resources, constructing seed banks, implementing full-cost insurance for grain producers in food-deficient counties and preventing the use of arable land for non-agriculture purposes.
China is also considering diversifying its food sources through increasing imports of feed grains and oil crops. In 2022, China imported 91 million tonnes of soybean and 20.6 million tonnes of maize, which accounted for about 14 per cent of its total grain consumption. While this campaign helps mitigate potential food shortages caused by climate-related disruptions in the short run by bolstering domestic grain self-sufficiency, the long-term effects of these…
China
2024 Tax Incentives for Manufacturing Companies in China
China offers various tax incentives to boost the manufacturing industry. The Ministry of Finance and State Tax Administration provide guidelines on eligibility and policies. VAT exemptions and refunds are available for companies producing specific goods or services, with a monthly refund option for deferred taxes.
China implements a wide range of preferential tax policies to encourage the development of the country’s manufacturing industry. We summarize some of the main manufacturing tax incentives in China and explain the basic eligibility requirements that companies must meet to enjoy them.
China’s Ministry of Finance (MOF) and State Tax Administration (STA) have released guidelines on the main preferential tax and fee policies available to the manufacturing industry in China. The guidelines consolidate the main preferential policies currently in force and explain the main eligibility requirements to enjoy them.
To further assist companies in identifying the preferential policies available to them, we have outlined some of the main policies currently available in the manufacturing industry, including links to further resources.
For instance, VAT is exempted for:
Companies providing the following products and services can enjoy immediate VAT refunds:
Companies in the manufacturing industry that meet the conditions for deferring tax refunds can enjoy a VAT credit refund policy. The policy allows companies to receive the accumulated deferred tax amount every month and the remaining deferred tax amount in a lump sum.
The policy is not exclusive to the manufacturing industry and is also available to companies in scientific research and technical services, utilities production and supply, software and IT services, and many more.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Exploring the Revamped China Certified Emission Reduction (CCER) Program: Potential Benefits for International Businesses
Companies in China must navigate compliance, trading, and reporting within the CCER framework, impacting operations and strategic objectives. The program focuses on afforestation, solar, wind power, and mangrove creation, offering opportunities for innovation and revenue streams while ensuring transparency and accuracy. The Ministry of Ecology and Environment oversees the program.
As companies navigate the complexities of compliance, trading, and reporting within the CCER framework, they must also contend with the broader implications for their operations, finances, and strategic objectives.
This article explores the multifaceted impact of the CCER program on companies operating in China, examining both the opportunities for innovation and growth, as well as the potential risks and compliance considerations.
Initially, the CCER will focus on four sectors: afforestation, solar thermal power, offshore wind power, and mangrove vegetation creation. Companies operating within these sectors can register their accredited carbon reduction credits in the CCER system for trading purposes. These sectors were chosen due to their reliance on carbon credit sales for profitability. For instance, offshore wind power generation, as more costly than onshore alternatives, stands to benefit from additional revenue streams facilitated by CCER transactions.
Currently, primary buyers are expected to be high-emission enterprises seeking to offset their excess emissions and companies aiming to demonstrate corporate social responsibility by contributing to environmental conservation. Eventually, the program aims to allow individuals to purchase credits to offset their carbon footprints. Unlike the mandatory national ETS, the revamped CCER scheme permits any enterprise to buy carbon credits, thereby expanding the market scope.
The Ministry of Ecology and Environment (MEE) oversees the CCER program, having assumed responsibility for climate change initiatives from the National Development and Reform Commission (NDRC) in 2018. Verification agencies and project operators are mandated to ensure transparency and accuracy in disclosing project details and carbon reduction practices.
On the second day after the launch on January 23, the first transaction in China’s voluntary carbon market saw the China National Offshore Oil Corporation (CNOOC), the country’s largest offshore oil and gas producer, purchase 250,000 tons of carbon credits to offset its emissions.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
China’s Ministry of Commerce announced new policy measures on April 19, 2023, to encourage foreign investment in the technology sector. The measures include facilitating bond issuance, improving the investment environment, and simplifying procedures for foreign institutions to access the Chinese market.
On April 19, 2023, China’s Ministry of Commerce (MOFCOM) along with nine other departments announced a new set of policy measures (hereinafter, “new measures”) aimed at encouraging foreign investment in its technology sector.
Among the new measures, China intends to facilitate the issuance of RMB bonds by eligible overseas institutions and encourage both domestic and foreign-invested tech companies to raise funds through bond issuance.
In this article, we offer an overview of the new measures and their broader significance in fostering international investment and driving innovation-driven growth, underscoring China’s efforts to instill confidence among foreign investors.
The new measures contain a total of sixteen points aimed at facilitating foreign investment in China’s technology sector and improving the overall investment environment.
Divided into four main chapters, the new measures address key aspects including:
Firstly, China aims to expedite the approval process for QFII and RQFII, ensuring efficient access to the Chinese market. Moreover, the government promises to simplify procedures, facilitating operational activities and fund management for foreign institutions.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
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- Exploring the Revamped China Certified Emission Reduction (CCER) Program: Potential Benefits for International Businesses
- China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
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