China may widen controls on foreign agriculture investment

China may broaden restrictions on foreign investment in the oilseed processing sector to other crops, Bloomberg reported, citing comments from He Yanli, deputy director of industries at the National Development and Reform Commission. He also suggested restricting imports of soybeans, describing the current 3% tariff on imported soybeans as “too low.” China is concerned about the growing presence of foreign-owned soybean processors, which have taken market share from their domestic rivals as demand slows. Overcapacity in the crushing industry has already prompted the government to boost support for the domestic industry. Foreign companies such as Wilmar International, Noble Group, Cargill and Bunge could be affected by a shift in policy.