China becoming more dependent on grain imports

摘要

China, one of the largest grain producers, is becoming increasingly dependent on agricultural imports due to population growth, rapid urbanisation and diminishing arable land. China's government has made it its top priority to ensure stable food supply for its 1.3 billion people and has introduced a series of measures to restrict grain exports. After a massive annual rise in food prices of 18.2% last November, which led to an 11-year high of 6.9% in the consumer price index, the Chinese government has decided to temporarily tax exports of wheat and corn in order to increase domestic supply and control rising food prices amidst fears that higher prices could lead to social unrest.