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China food production struggles

An expert on U.S./China relations says the Chinese government is not doing an adequate job of growing its domestic food production system.

Brian Chang, president of Pacific Investment Partners, advises U.S.-based companies wishing to enter the investment market in China.

He tells Brownfield the state-controlled ag sector is taking steps to become more sustainable, but the reliance on imports from other countries will continue.

“You have 1.3 billion people there, and also with the free-flow of information, people know which countries produce (the best foods).  The French produce arguably the best cheese, and with the U.S. it’s the beef.”

The Agricultural Bank of China recently announced an investment of $450 billion dollars to modernize China’s ag industry.

Chang says the country has a long way to go.

“There’s a trust issue.  Food safety is a big deal in China.  The cattle or hog industry…even the feed they use; sometimes that’s contaminated by U.S. standards.  So if the feed is contaminated, you know the meat that’s later produced will not be good quality.  And the Chinese know that.”

Brownfield spoke to Chang following a town hall meeting on China held at the Minnesota State University campus in Mankato Tuesday.

U.S. farm and food exports to China totaled more than $20 billion dollars in 2015.