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Trade Liberalization, Rising Imports and China's Food Economy: The Case of Soybeans

Policy Briefs
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In our report, our overall goal is to understand how soybean trade policy changes and changes in soybean trade flows that China has experienced between 1997 and 2003 have affected China's producers, consumers and users of soybeans. To do so, we will:

1. briefly analyze the nature of China's soybean markets; and understand the nature of the links between soybean trade, domestic market development, price, production, and consumption;

2. analyze the responses of households that are affected by soybean trade-related changes;

3. predict the magnitude and direction of responses to trade liberlalization-induced price shifts and suggest if policies are needed to offset adverse effects

In order to meet these objectives, we will describe in great detail using a number of data sets: the nature of soybean markets in China; the linkages between soybean producers, consumers and poverty; use our CAPSIM model to understand the impacts of trade changes on soybean producers, livestock producers and consumers; and finally discuss policy options.

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