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China Needs to Attach More Importance to the Strategic Status of South America in Global Agricultural Product Supply System—A Research Report on a Study Tour in Brazil and Argentina (No.175, 2019)

( drc ) 2019-11-13

By Cheng Yu & Ye Xingqing, DRC Research Team to Brazil and Argentina eam to Brazil and Argentina,

Research Report, No.175, 2019 (Total 5675) 2019-10-8

Abstract: South American countries such as Brazil and Argentina boast huge growth potential of agricultural production and trade. These countries’ dependence on agricultural exports is in step with China’s demands for stable and reliable overseas supply bases. As a result, it is of great strategic importance for both sides to further improve agricultural cooperation. However, both Brazil and Argentina are facing problems such as unstable economic performance, uncertain policies, relevant issues relating to the employment of labor force and strong environmental protectionism. The industrial chain of international grain traders is already quite complete, whereas Chinese agricultural enterprises in Brazil and Argentina still face difficulties to adapt to local conditions. Therefore, China needs to improve overall coordination, establish a mechanism for Chinese-funded enterprises to go global in groups and promote the integration and cooperation of the whole industrial chain. Besides, China needs to improve its overseas grain sources, enhance its leading role in logistics channels and provide efficient financing services for agricultural trade and investment projects of Chinese-funded enterprises. Efforts need to be made to meet growing demands of domestic market, tap the growth potential of agricultural production and trade in Brazil and Argentina and improve dialogues on agricultural policies with these countries.

Key words: overseas grain sources, global supply chain, Brazil, Argentina