China’s Outbound Investment Benefits the World

The recent China-Ukraine agricultural cooperation is a focus of global attention. Certain media claim that China bought land in Ukraine to plant crops and so ensure its own food safety.

He Zhenwei’s response to such claims: “There are misunderstandings about this bilateral agricultural cooperation. No Chinese enterprise has bought land in Ukraine, because its laws prohibit such purchases by foreign entities within its boundaries. China-Ukraine agricultural cooperation is based on land leasing, but media reports have distorted this fact.” He went on, “China’s policies encourage international cooperation in agriculture. As we all know, agriculture is one of the most important industries in China and involves hundreds of millions of people. This has equipped the country with ample expertise and experience in this regard. We’ve leased land in Africa, Russia and Ukraine, at the same time sharing our experience with locals.”

Ukraine is an agricultural country, once dubbed the “granary of the former Soviet Union.” It has vast arable land, much of it uninhabited, and a small population. No matter grain produced in the country stays there, is transported to China or sold to another country, the leasing of uncultivated land by Chinese enterprises is a contribution to world food security.

“Whether or not grain produced in Ukraine goes to China implies nothing,” He said. Ukraine is an exporter of agricultural products whose destinations include Europe, the Middle East and now China. “Through contacts with Ukrlandfarming, one of Ukraine’s leading agricultural enterprises, I have learned that the group owns 530,000 ha. of land, much of it lying fallow. The group has expressed willingness both to cooperate with China in utilizing its idle land and to export the grain it produces to China,” He said.

The Volvo stand at the 2014 Geneva Motor Show.

China also owns plenty of unused agricultural resources, capital and laborers, which makes China-Ukraine agricultural cooperation beneficial to both sides.

“In brief, we should take a rational view of China’s overseas investment in agriculture. In spite of its large population, China can guarantee its grain supply through technology. I think that by encouraging Chinese agricultural enterprises to go global China is in a sense endeavoring to strengthen its agricultural sector by pitting these enterprises against international competitors, so making them an international force. The essence of the ‘going global’ strategy for Chinese agriculture is that it will contribute to world agricultural development,” He concluded.

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