China is accelerating the development and distribution of high-protein corn varieties. This is to reduce its reliance on soybean imports, which determine the protein content of animal feed. China depends on the United States for over 20% of its soybean imports, and with the recent escalation of U.S.-China trade tensions, tariffs on soybeans have increased, making supply chain disruptions inevitable. Therefore, following Chinese President Xi Jinping's directive that "the rice bowl of the Chinese people must be firmly held in the hands of the Chinese people," China aims to strengthen its food security.
According to the Hong Kong South China Morning Post (SCMP) and state-run China Central Television (CCTV) on the 13th, a research team led by Yan Zhenbing, president of Huazhong Agricultural University, announced that they have successfully developed high-protein corn after approximately 10 years of research, and the cultivation area has recently surpassed 667,000 hectares (about 20.2 million pyeong). The average protein content of this variety is 10%, which is 2 percentage points higher than that of conventional corn. Yan noted, "One-third of our cultivated land is used for corn, and last year's total corn production exceeded 209 million tons (t). If the protein content of corn increases by 1 percentage point, it can provide an additional 2.9 million tons of protein each year."
China's focus on developing high-protein corn is to replace soybeans. As the living standards of Chinese people improve, the demand for meat, eggs, and milk has increased, making the supply of protein-rich animal feed crucial. The key ingredient needed is soybeans. Soybeans are high in protein, inexpensive, and can be transformed into a form that livestock can easily absorb. Yan stated, "If we effectively utilize the 2.9 million tons of protein derived from corn, we can import 7 to 8 million tons less of soybeans."
According to the General Administration of Customs of China, last year China imported 105 million tons of soybeans, accounting for about 60% of the global grain trade volume. The issue is that 23% of this import volume relies on the United States. According to Yan, for China to achieve self-sufficiency without importing soybeans, it needs to secure an additional 1.4 to 1.6 billion pyeong of soybean cultivation area. However, considering the current population and land circumstances, Yan believes this is not feasible.
China's reliance on the United States for soybean imports has become a leverage point for the country. As the U.S.-China trade dispute escalated in 2018, China imposed additional tariffs on U.S. soybeans and shifted its import sources to Brazilian soybeans. Since the 4th of this month, it has also increased tariffs on U.S. soybeans by 10%. This is in response to the overall 20% increase in tariffs on Chinese imports by the United States over the last two months. This poses a significant blow to U.S. President Donald Trump, as it may worsen the sentiments of his key support base in the rural Midwest, while also potentially harming economic growth since soybeans are a major agricultural product in the United States.
However, the high reliance on U.S. soybeans represents a potential weakness for China. This is why Chinese President Xi Jinping emphasizes that "the rice bowl of the Chinese people must be firmly held in the hands of the Chinese people" whenever tensions escalate in U.S.-China relations or the possibility of war with Taiwan arises. SCMP reported, "China has been steadily working to diversify its soybean supply in recent years," adding that "U.S. soybeans currently account for more than one-fifth of China's imports, down from 40% a decade ago."
This year, China plans to further strengthen its food security through the diversification of soybean imports and the expansion of domestic yields. According to the Chinese financial media Financial Sector, "(China) imposing a 10% tariff on U.S. soybeans may lead to an increase in domestic import expenses in the short term, and domestic feed companies are looking towards alternative suppliers in Brazil and Argentina," noting that "the key method to reduce dependence on U.S. agricultural products is to increase the level of domestic yields."