The Impact of Trade Liberalization on China's Agriculture and Rural Economy

In: SAIS review, Band 23, Heft 1, S. 115-131

Abstract

This paper analyzes the effect of China's trade liberalization
process on the nation's rural economy. Although some leaders fear there
will be substantial negative effects on China's rural sector and food
security, a closer examination shows that the World Trade Organization
(WTO) accession is part of a longer-term, efficiency-enhancing process
of liberalization and opening to the outside world. When analyzed from
this angle, the impacts of WTO reform, while not trivial, reflect trends
already evident, many of which are positive. For example, while WTO
accession may accelerate price decreases for certain crops, such as wheat
and corn, prices should rise and export opportunities should increase
for commodities such as meats, fruit, and fish. Rural wages in most
sectors that employ rural workers should also rise. Finally, this paper
describes a number of different ways that China and its rural residents
will be able to protect themselves after trade rules are liberalized.