China's food industry, which has lagged behind developed
countries for around 20 years in terms of technology and equipment,
will face enormous challenges when the country opens the sector
wider to comply with WTO obligations.
Zhang Guobao, deputy director of the National Development and
Reform Commission (NDRC), the macroeconomic management agency under
the State Council, made the remarks at a recent national food
industry conference.
He said that foreign food investors were trying to grab a bigger
market share by using their advanced technology and huge capital
resources, posing a threat to China's food industry.
Meanwhile, foreign countries were upgrading inspection standards
for an increasing number of imported food products, putting great
pressure on China's food exports, said Zhang.
A development program for China's food industry in the 11th Five-Year (2006-2010) Plan noted that the
food industry has witnessed rapid growth in recent years.
However, the sector still does not generate sufficient added
value, is too small in scale and irrationally structured, and
consumes too many resources.
China needs to upgrade its food industry technology, enhance
independent innovation and improve food security, according to the
plan jointly published by the NDRC, and the ministries of
agriculture and science and technology.
Over the next five years, China will focus its technological
efforts on processing grain, edible oil, vegetables and fruits,
meat, aquatic and dairy products, beverage and sugar.
Last year, the output value of China's food industry came to 2
trillion yuan (US$250 billion), an increase of 97.2 percent over
2000, or an average growth rate of 19.4 percent from 2000 to
2005.
Industrial added value totaled 630 billion yuan (US$79 billion),
up 87.8 percent from 2000, or an annual increase of 17.6
percent.
(Xinhua News Agency October 29, 2006)
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