Soybean in China: adaptating to the liberalization

This is the authors' abstract. We don't add key points for this paper.

Since 1978 and its opening, China has undergone a process of nutrition transition, animal products taking an increasing share. Anxious to ensure a certain level of food independence, Chinese authorities have developed national livestock production. The increase in volumes and the development of large scale breeding have increased the demand for commercial feed and thus soymeal. Meanwhile, edible oil consumption rose sharply, accentuating the demand for soybeans. To meet this demand, soybean imports were liberalized early, leading the country to become heavily dependent. China has indeed made the choice to maintain its independence in cereals at the expense of other grains, such as soybeans. Competition between corn and soybeans has turned in favor of the cereal, soybean production levelling off then regressing. China’s dependence extends to the crushing sector, controlled by foreign companies. Public supports in place, such as minimum prices, have resulted in increasing the price gap with imported products, leading to a reform of soybean policy in 2014.