China's WTO Entry Puts Agriculture to Test: Expert

The competitiveness of domestic farmers has become a major concern of the Chinese government as the entry of the World Trade Organization draws near, China Daily reported Sunday, quoting a senior consultant to the State Council.

The newspaper's Business Weekly cited Chen Xiwen, an expert at the national think-tank, the Development Research Center under the State Council, as saying that China's WTO accession will put Chinese farmers in a tight corner as cheaper foreign agricultural products flood in.

The coming battle is one reason why the government has decided to give top priority to improving agriculture and to increasing farmers' incomes in the coming years, Chen said.

Figures from the National Bureau of Statistics indicate that per-capita annual income growth dropped to 4.6 percent in 1997, and the rate further plunged to the record low of 3.8 percent in 1999, when the average annual net income of farmers stood at 2,210 yuan (US$266.3).

"The decline in the income growth will hinder the overall economic development and even undermine social stability," Chen said, adding that the rural economy makes up about half of the country's gross domestic product.

Statistics show that domestic wheat prices are 75 percent higher than that on the international market, while the corn price is 63 percent higher, and cotton price is 12 percent higher.

Farmers will have to readjust agricultural and rural industrial structure to increase their competitiveness. The government should increase investment in application and dissemination of advanced agricultural technology, said the expert.

He pointed out that administrative structure in rural areas needs to be simplified, and the random and irrational fees and measures often imposed on farmers need to be eliminated.

"Institutional reform is the key to increasing farmers' income and reducing their financial burdens," the expert noted.

He added that the development of township businesses and the expansion of small towns should be prioritized for creating more job opportunities for farmers and accelerating the resettlement of rural laborers.






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