Despite recent setbacks in the progress toward economic globalisation, evidenced by volatile Euro exchange rate and negative result of the Danish referendum, the world economy is increasingly becoming integrated, thus extensive labour division and commodity exchange. A typical scene could be like this for an ordinary Pekingese: A man, after finishing his breakfast including milk from Denmark, dressed up in homemade Pierre Cardin, rides in his Shanghainese Volkswagen to work in a Sino-U.S. joint venture. His duties involve browsing the Internet for client information and speak on the phone in English with his superior in the U.S. In the middle of the day, he usually goes for a hamburger in the McDonald nearby, then back to work again. The daily events revolving around our lives would increasingly take on an international air, as depicted above.

Given the ongoing trend of globalisation, Chinese agriculture is both confronted with opportunities and challenges. On the one hand, we could greatly benefit ourselves, on entry into WTO, with cheaper imports, such as grain, fruits and vegetables, sugar, dairy and aquatic products, as well as strengthened exports in rice, soybean, cotton, peanuts, tea, and hog bristles to our advantage. Besides, we will be able to easily make use of foreign finances and advanced technology. On the other, the competition brought on by foreign agricultural producers will inevitably phase out some of the local farm produce that are less competitive, hence reduce the national agricultural capability and increase dependency on foreign imports. Still worse, the fragile domestic balance in food supply and demand might collapse, in consideration of the land shortage, the low efficiency in farming, the size of the population and possibility of major drought or flood. This scenario is disastrous worldwide, when we are to answer the following question: How much more wheat would China have to import in case of emergency, without inflating the world market price? In fact, the self-sufficiency in food supply in China is achieved through intensive cultivation on limited arable land dwindling away, due to urbanisation, pollution and desertification, complicated by water shortage for irrigation. Figures show that an estimate of one-third of cultivated land has been lost since 1957, reducing the average per capita to 0.2 acre. Deteriorating situation also occurs on pastures and fishing waters. Agricultural mechanisation is actively pursued, although it remains in the early stages of development and is considered impractical in many places because of the relatively small size of the cultivated areas. Therefore, farming in China is largely labour-intensive.

The solution to the vulnerable situation that Chinese agricultural sector faces in the world economy would simply be the promotion of science and technology, with appropriate government policies and streamlined measures in production and distribution. Advance in science and technology would presumably enhance agricultural productivity without further demand on labour input or natural resources, as seen in the hybrid rice, greenhouse cultivation, drip irrigation, fertilisation, artificial rainfall and mechanised harvesting. Equally important are government policies in favour of science and research, application of machinery, as well as land/water conservation. Among other things, farm produce normally requires dedicated facilities and equipment for storage, conveyance, processing and packing, to avoid decay and bruise. A centralised marketing system is also preferable here to lower the cost in distribution. Contrary to this, some 60% of Chinese agricultural output are traded on the free market by farmers themselves or small dealers, with makeshift gears. Generally speaking, the strategic objective in my opinion is to strengthen the national agricultural productivity of staple crops to our advantage, such as rice and soybean among others, while opening up domestic market to the rest of the world, so that the national interest in both food availability and security is guaranteed.

Below are specific areas of agriculture that needs immediate attention:

Promotion of agricultural mechanisation. The notion that machinery is not suitable for agriculture in China is biased, in that, machines contribute to efficiency in all stages and forms of agricultural production, other than one stage or one form. From ploughing, sowing, fertilising, harvesting, baling, storage, processing, and transportation, to air surveillance/seeding/herding, milking, and greenhousing. The organisational segregation in production as a result of the reformation from collective to household unit should not be an obstacle to the use of machine, since it is possible for these units in the village to arrange for a joint application. Other fallacious argument that lays blame for the restricted manoeuvrability of farm implements has turned a blind eye on the adaptability of modern mechanics. The only constraint left in this matter is finance, which can be readily resolved through lease, bank loan or overseas investment.

Promotion of farm produce that already enjoy international competitiveness, including economic crop and herbal medicine. To our knowledge, Holland is the world leading flower producer and exporter and Australia has established itself as major wool exporter, while Argentina has long ranked as the chief exporter of raw meat. So what becomes of China? Rice paddy of the world or soybean giant? Regrettably, our neighbours have undermined our traditional status in tea and silk production, which deserves revitalization.

Environmental protection related to agricultural production. China has experienced severe environmental degradation in the last two decades or so. This in turn has delivered negative impact on farm production as mentioned before. Therefore, the foremost task is to bring the land encroachment to a halt, by curbing the urban sprawl, afforestation, soil rejuvenation and pollutant discharge control.

Promotion of organic farming. Chinese farm produce is largely organic, as compared with genetic modified crops in western countries, nourished with chemicals, pesticides and growth hormones, which have triggered much debate and even moratorium. In this regard, the traditional practices are more valued and China inadvertently stands a good chance in the world agricultural market.

In conclusion, agriculture in China has a long way to go in matching the world standard, particularly in the field of mechanisation and distribution system. In consideration of limited natural resources, the key to future development is science and technology, which will surely give us a competitive edge in the global economy.