Government Policy and Agricultural Development

The problem of food supply and demand has always impinged on daily life in China. As a socialist country with a centrally controlled economy, government policy has been of paramount importance for the historical development of China’s agriculture. The supply and demand of agricultural products, especially grain products, have been strongly influenced by the agricultural policy of the state. Agriculture’s role in economic development is a fundamental policy issue since, amongst other things; it defines the context in which other detailed policy instruments have to be accommodated. Expansion of the non-agricultural sector is strongly reliant on domestic agriculture, not only for a sustained increase in the supply of food, but also for raw materials used in manufacturing products such as textiles. The importance of agriculture’s product contribution is not only through the supply of food and other agricultural products for the main necessities of people’s life, but through its ability to provide huge amounts of raw materials for industrial production.