Historical Trends in China's Virtual Water Trade

Increasing water scarcity in China demands a more detailed analysis of water use in different sectors. In this paper, China's food import and export levels are analyzed in light of water availability. Their contributions to national water management in the form of virtual water are also evaluated. The findings show that the virtual water trade has developed unconsciously. This trend has been greatly influenced by micro- and macro-economic conditions, as well as fluctuations in weather conditions. Given the intensification of water scarcity, future food policy should promote an active application of virtual water strategies (such as virtual water trade and agricultural structure adjustment) to improve food security and sustainable water uses. With the progressive liberalization of food markets in China, virtual water trade is likely to play a more important role in future water resources management.