China has devised a big plan to encourage the country’s tech talent to move to the countryside and help transform this vastly underdeveloped market, as it tries to narrow the digital divide between rural and urban areas, reported the South China Morning Post.

This plan is Beijing’s solution to the challenges that China is facing, as it seeks to cultivate a large domestic market to counter challenges outside the country. Following decades of brain drain and declining investment, the countryside has become a weak spot in China’s economic development: While the expansive region is home to 44% of the country’s population, rural income per capita last year was only 39% that of urban areas.

The country aims to establish a comprehensive policy and regulatory framework by 2025 to ensure a steady flow of talent in farming, business operations, public service and governance to rural areas. And Beijing now wants to use the state’s power to redirect skilled workers, especially those in technology, to help the countryside catch up.

In its search for ‘rural revitalization’ China is developing its self-reliance, further distancing its economic needs from the rest of the world

By Patrick Body

Pledging to increase ‘rural revitalization’, China has placed greater emphasis on food security and self-reliance in its annual blueprint for rural policies. The blueprint specifically discusses issues such as tackling bottlenecks in agricultural technologies, strengthening the homegrown breeding system and continuing to alleviate poverty in rural areas. Comprehensive revitalization of the countryside will form the central pillar of the next five years of agricultural strategy.

The strategy will see China increase home-grown grain supplies and other important agricultural products in addition to seeking improvement in rural industries and create more rural jobs. Upgrading the water supply, logistics, the power grid and transport infrastructure is also a priority. Overall improvement in rural governance is the final of the four main strategic goals.

The information, released in a policy statement by the Central Committee of the Communist Party and the State Council, the nations cabinet, continues the 18 year consecutive theme of agriculture and rural areas being high on the country’s priority list. The plan to regenerate countryside is part of wider attempts to increase growth, alongside looking to reduce the urban-rural divide and push the economy closer to greater self-reliance.

China’s self-reliance drive comes in the face of increasing Sino-US tensions and the ongoing decoupling between China and the rest of the world. Aiming for increased autonomy, aside from the now routine items such as long-term guarantees of farmers’ incomes, infrastructure improvements and basic public services in rural areas, forms the underlying theme coming from policymakers.

Unlike in previous iterations of the yearly plan, this year’s sets out several numerical targets for food production. One such target is achieving an annual grain output of over 650 million tonnes and creating 100 million mu (6.67 million hectares) of high-quality arable land that can produce large crops and withstand natural disasters.

China is, as always, looking to the future, and with a renewed focus on agriculture and developing self-reliance it is moving further down the road to economic independence.

The Chinese economy continues to do remarkably well given the state of 2020, but then the US economy is not doing badly either, amazingly. The final result of the pandemic on the various economies of the world is not yet decided. The government has now formally announced that the goal of ending poverty has been achieved, which was expected even with the virus disruption, but keep in mind Number 2 Li Keqiang’s surprising caveat back in May, saying that 600 million people have income amounting to only $140 a month. Putting aside the question of how to measure poverty, there is no doubt people in China are overall better off than they were before, even as the wealth gap between city and country continues to grow.

A key part of next year is going to be a reconsideration of US China relations, and we got a few pieces of information this week hinting at how things might go. Biden named his Secretary of State candidate, who has the wonderfully patriotic name of A. Blinken. Say it fast. Based on what we know of him, China will be a top priority and creating a consensus amongst various nations and players will be close to the top of the agenda. China’s leader, Xi Jinping, sent Biden a message with his personal congratulations on winning the presidency, saying: “I hope to see both sides uphold the spirit of non-conflict, non-confrontation, mutual respect and win-win cooperation, and focus on cooperation while managing and controlling disputes.” Liu He, meanwhile, also softened the tone, saying that China was committed to opening its economy, despite what many analysts interpret the New Big Policy, Dual Circulation, to imply — import substitution. Balanced against that is the announcement of new duties being slapped on Australian wine imports, of reportedly up to 212%. No wonder the phrase is “The glass is dry.” 

It is becoming increasingly clear that China will fall far short of the targets for US purchases agreed in the trade war “cease fire” deal in January. Will Biden continue the hard line? Will TikTok be banned? Will Chinese scholars and students continue to be pushed out? Before we get to all those questions and more, we still need to hold our breaths over whatever else the lame duck Trump administration is planning before the clock strikes Jan 20.

Have a great weekend.

Dry weather and government stockpiling have pushed soyabean prices to a four-year high, as a broad rebound in agricultural commodities creates unease about inflation, reported the Financial Times.

Grains and soyabeans have been rising steadily since the middle of the year, buoyed by governments shoring up their reserves in anticipation of disruption from the second wave of the Covid-19 pandemic. China has been a particularly active buyer as the country steadily rebuilds its pig herds in the wake of the devastation caused by African swine fever, said the FT.

This strong demand “suggests that some countries are concerned about food inflation,” said Andrew Rawlings, an analyst at Rabobank. Inflation is “creeping up in some places”, he added.

Hot and dry conditions in southern Brazil and Argentina as a result of the La Niña weather pattern have knocked the supply of soyabeans, lifting prices traded in Chicago to $11.01 a bushel, up more than a third since their April low. “Any further weather issues in South America and this can give reason to see soya in the teens,” said Matt Ammerman at US commodity broker StoneX.

China has rejected Australia’s appeal to scrap a tariff on its barley exports, two sources told Reuters, all but closing the door on a trade worth about A$1.5 billion ($1.05 billion) in 2018.

The rejection comes after Australia sought a formal review over duties totalling 80.5% that China imposed this year, citing as grounds subsidies and dumping, activities that Australia has denied, reported Reuters.

“We were informed last week that the application was unsuccessful,” said one Australian government source, who sought anonymity as he is not authorized to speak to the media. “We are extremely disappointed, but not surprised.”

Its rejection will force Australian farmers to sell barley to the domestic livestock industry at prices less than sales to China would have earned.