Source: Financial Time
Red China has announced plans to acquire farmland abroad in order to accommodate its swelling population. Beijing is pushing to make this a government mandated policy in line with its mandated investments in state-owned banks and oil companies. As China experiences an economic boom, it is becoming increasingly reliant on meats instead of rice, which has always been a staple of the Chinese diet. Even though China boasts 40% of the worlds farmers within its borders, its usable land is limited. Only 9% of it is able to yield harvest. Oil rich countries like Libya and Saudi Arabia are also looking to secure foreign land to lock down a secure food supply.
So it will be in the Chinese government’s interests to expand beyond its borders so it doesn’t become a financial casualty in the oncoming global food wars. Its focus is on South American (Brazil in particular) and African countries (already partnered for natural resources) which it intends to acquire land to grow soybeans, bananas and vegetables. At issue is whether China will use Chinese labor and Chinese manufacturing equipment if it gets into these countries, a practice often used by countries that acquire land abroad. CLICK [HERE] for the full story.
