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 the People's Republic 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 & food security, a closer examination shows that the World Trade Organization (WTO) accession is part of a longer-term, efficiency-enhancing process of liberalization & 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 & corn, prices should rise & export opportunities should increase for commodities such as meats, fruit, & fish. Rural wages in most sectors that employ rural workers should also rise. Finally, this paper describes a number of different ways that China & its rural residents will be able to protect themselves after trade rules are liberalized. 2 Tables. Adapted from the source document.