China’s Foreign Agriculture Investments

Chinese companies are increasing their investments in foreign agricultural and food assets. Their broad aims are to gain profits for Chinese investors while achieving national food security and projecting China’s influence abroad. While the United States is the largest supplier of China’s agricultural imports, it has not been a major target of Chinese agricultural investment. Chinese investors tend to enter less-developed countries where there are few competitors, potential to raise productivity using Chinese technology, and potential to diversify suppliers of Chinese imports. A few companies with access to financing from Chinese banks are pursuing mergers, acquisitions, and partnerships with companies in more developed markets. These investments reflect changes in China’s demand for food and its need for upgrades in technology and management, but most ventures have modest impacts on agricultural trade