Reuters:
I have two questions. First, the market is concerned about the plan to boost soybean planting and output mentioned in the "No.1 Document". Would you please detail this plan, for example, the targets of increasing soybean planting area and output? My second question is about the Sino-U.S. trade war. Since its inception, China has approved grain imports from new exporters. Will this diversification of imports continue after the Sino-U.S. negotiations are completed?
Han Changfu:
In regard to this question about soybean production and trade, I'd like to give the floor to Director Wu Hongyao.
Wu Hongyao:
The plan to boost soybean planting and output is an important measure to readjust agricultural supply-side structural reform, in particular the planting industry. We will enhance our efforts in following areas: first, to shore up the soybean planting area, and encourage farmers mainly in Northeast China and the North China Plain to get involved. Second, to accelerate scientific research into the development and selection of high-quality and high-yield varieties to tackle the key issues of improving soybean adaptability, output and quality. Third, to cultivate some new soybean production companies and new cooperative organizations through collaboration with the further development of the processing industry, and to deepen specialization in the soybean production and trade. The plan will mainly provide support in regard to technologies, structure and policy.
As to your second question about the soybean trade, China is a major importer of American soybeans, with the latter occupying about one-third of its total imports. The volume fell last year as a result of the trade friction. As was mentioned, China consumes around 110 million tons of soybeans each year, while its annual production is only 16 million tons. This means about 90% of its soybean needs rely on imports. We will open wider to the world, including increasing the openness of the agricultural sector to make good use of both domestic and foreign markets and resources. China's soybean market will remain open. We will allow the market and businesses get involved to decide the source of imports, and follow the general rules of economics. Our market is also open to the U.S.
Han Changfu:
I would like to add three points. First, China is a soybean producer with its own features and strengths. So, we will appropriately develop our own soybean industry based on our resource advantages and consumer needs. Second, China's reliance on soybean imports will remain despite the development of its own soybean production. As Mr. Wu has mentioned, China produces about 16 million tons of soybeans each year, but annual consumption amounts to 110 million tons, creating an import demand of around 90 million tons. Third, we will continue our soybean trade with other countries and diversify the sources of soybean imports. I believe China and the U.S. will continue to be important soybean trading partners. Thank you.
