China is a major producer of grain, why does it still import large quantities of grain every year?

China is the home of soybeans and is currently the world's leading producer of non-GMO soybeans. Before the 1994-1995 grain year, China has been the traditional soybean exporter. With the continuous improvement of people's living standards, the domestic consumption demand for soybeans and their products showed a sustained growth trend. 1995-1996 grain year, China for the first time from a net exporter of soybeans to a net importer of soybeans.

Foreign investment in a big way into and control of China's soybean processing industry began in 2004. That year, China's major soybean processing enterprises due to the international market judgment is wrong, the high price of imported soybeans have not yet landed that fell to more than 1,000 yuan / ton, heavy losses. And foreign capital has taken the opportunity to enter China's soybean crushing industry on a large scale, and now has control of more than 70% of the crushing capacity.

These multinational grain merchants gradually monopolize the import of soybeans in China, so that foreign soybeans continue to enter our country, and then our local soybeans are gradually crowded out of the purchase order of the oil companies. From 1996 after 10 years, China's annual imports of soybeans from 2.695 million tons to more than 28 million tons, an increase of more than 10 times, far more than the annual output of domestic soybeans. Expected 2006-2007 grain year, China's soybean imports will reach 31 million tons.