Farmland and Water: China invests abroad

The report examines China's agricultural investment strategy, noting a transition from market dependence to foreign direct investment. While China remains largely self-sufficient in staple grains, it requires imports of soybeans, cotton, and palm oil for its industrial and energy sectors. The document details various investment models, including aid-driven demonstration farms, joint ventures, and direct land acquisitions. It confirms 54 Chinese projects covering 4.8 million hectares across Africa, Asia, and Latin America, while cautioning against the social and environmental risks associated with large-scale land acquisitions.

• China is shifting its strategy for securing agricultural inputs from a dependence on global commodity markets and traders to a strategy based on foreign direct investment, which includes the acquisition of large tracts of farmland and water resources.
• While China maintains a policy of self-sufficiency for staple food grains like rice, wheat, and corn, it is heavily dependent on global markets for other agricultural commodities used in food processing, manufacturing, and energy, specifically soybeans (38% of total agricultural imports), cotton (9%), and palm oil (8%).
• The 'Go Global' strategy, adopted in 2001, encourages Chinese enterprises to invest abroad by removing administrative barriers, providing incentives, and concluding bilateral investment treaties, with agriculture identified as a priority sector.
• China's agricultural investment abroad is diverse, utilizing three primary models: aid projects (such as demonstration farms), production investments (joint ventures and contract farming), and the direct acquisition of land and water resources.
• Out of 86 reported Chinese projects in developing countries, the authors confirmed 54 projects covering 4.8 million hectares. Geographically, these confirmed projects include 17 in Africa (463,800 hectares), 29 in Asia (2.5 million hectares), and 5 in Latin America (770,000 hectares).
• Large-scale land acquisitions are associated with negative effects, including the neglect of existing land rights, a lack of community consultation, and a failure to generate expected employment.
• To ensure sustainable and responsible investment, the report recommends the use of global investment guidelines, the creation of clear and measurable contracts, the implementation of environmental and social impact assessments (ESIAs), and increased transparency and public participation.

APA

Smaller, C., Wei, Q., & Yalan, L. (2012). Farmland and Water: China invests abroad. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/farmland_water_china_invests.pdf

Chicago

Smaller, Carin, Qiu Wei, and Liu Yalan. Farmland and Water: China invests abroad. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/farmland_water_china_invests.pdf.

Wikipedia

{{cite report |last1=Smaller |first1=Carin |last2=Wei |first2=Qiu |last3=Yalan |first3=Liu |title=Farmland and Water: China invests abroad |publisher=International Institute for Sustainable Development |date=August 2012 |url=https://www.iisd.org/system/files/publications/farmland_water_china_invests.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{smaller2012farmland, author = {Smaller, Carin and Wei, Qiu and Yalan, Liu}, title = {{Farmland and Water: China invests abroad}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = aug, url = {https://www.iisd.org/system/files/publications/farmland_water_china_invests.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }