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China was given the legal right to invest abroad and during a visit to
Africa the Chinese Premier made it clear that China wanted to set up
joint ventures on the continent but this was doubtful as China did not
have enough foreign currency to risk large foreign investments.
Despite this, the first investments were made in the agricultural
sector. As a result, by 2008, China became the 4th largest importer of
agricultural products. The Ministry of agriculture is responsible for
stimulating production, ensuring food security, and promoting
structural transformation and modernization. Diplomats in the Ministry
of foreign Affairs give advice, help in concluding agreements in
General, and also play a role in China's economic interaction abroad.
The Central Bank was assigned the task of strategic use of funds and
eventually established strategic partnerships with leading Chinese
corporations. By the mid 90's institutions were created that will
support China's globalization but there will only be instructions on this
issue in 99 this means that the issue of investment is not entirely new
for China. As the food crisis began to take place, the Chinese
government improved its structure to bring agriculture to the global
level. Economic funds, economic diplomacy, and strategic cooperation
agreements with Chinese political banks were used for this purpose,
but Chinese companies did not consider this policy effective and
insisted on more. China published catalogs that guide Chinese investors
looking for business inside China investment in African agriculture was
on the radar, but in moderation, at least until 2007, and that the
government did not encourage Chinese firms to grow grain in Africa to
feed the Chinese people. We established the first special Fund for
foreign economic and technical cooperation and offered General
support for reaching the global level. Chinese firms were encouraged to
use the centers as platforms for other investments and look for ways
to make the centers profitable and self-financing. This would not only
ease the sustainability issues that previously hindered China's
agricultural aid efforts, but also “create a lot of opportunities for
China's agricultural enterprises.” Finally, we see that in 2006, the
Ministry of agriculture and the development Bank of China signed a
five-year agreement to work together to modernize China's
agriculture. High food prices, combined with ongoing Chinese efforts to
develop its global agricultural policy, have created a nightmare for the
agriculture Ministry. Chinese politicians clearly did not expect an
international reaction, which erupted due to the perception that China
wants to acquire large amounts of land abroad in order to grow food to
be sent back to China. The Chinese development Bank and the Chinese
Eximbank offer much greater financial support to African governments
to invest in their own agricultural sectors. Outside of China, people
were still deeply concerned about any hint of a large-scale Chinese
appetite for Land abroad. However, if the future emerges from the
past, China's policy on foreign investment in agribusiness will evolve
gradually, rather than abruptly, as Chinese planners experiment and
learn from experience. China is likely to continue producing rice and
wheat in quantities that provide basic food security at home,
protecting these crops from external imports, as Japan does today
with its 800 percent tariff on rice