Situation of Rice Production Cost in China

China is the largest rice production country in the world that produced 120 million metric tonnage of rice(32% of world rice products; polished rice) in 2002/2003. She is also very competitive in terms of the production cost on the basis of abundant labor and low wage. The production cost per kilogram of rice in China is 150 Korean won in 2001, which is six times lower than that of Korea. Especially, agricultural productivity has increased dramatically since the expansion of farm business sale(per farm household) and the transformation from state enterprises to family farm system in 1979. Such rapid growth of Chinese rice production will be a menacing factor to the Korean agriculture that is about to open its domestic agricultural market. This paper is to get the implication on Korean rice sector by reviewing current situation of Chinese rice production cost