WERA101: Assessing China as a Market and Competitor
(Multistate Research Coordinating Committee and Information Exchange Group)
Status: Inactive/Terminating
WERA101: Assessing China as a Market and Competitor
Duration: 10/01/2005 to 09/30/2010
Administrative Advisor(s):
NIFA Reps:
Non-Technical Summary
Statement of Issues and Justification
There is enormous demand in the United States for high-quality and timely information on China's agricultural production, consumption and trade. China is the world's largest producer and consumer of many agricultural commodities exported by U.S. producers, including rice, wheat, cotton, pork and poultry, the second largest corn producer and the world's largest soybean importer in recent years. However, China's trade patterns have been a major source of uncertainty and volatility in the past, with year-on-year swings in net imports sometimes comprising over 10 percent of international trade volume. China is also becoming a major producer and exporter of a wide variety of horticultural products, competing with U.S. producers at home and in several third-country markets. In addition, consumption and marketing patterns are rapidly changing in China, generating more uncertainty for marketers of food products. Consumers in China are moving away from staple grains toward more vegetables, fruits and livestock products, and marketing chains are developing to improve the quality of food products in urban areas.
Several research institutes, government agencies, and private enterprises serve to meet the demand for information on China's rapidly changing agricultural economy, and these efforts are strengthened by close communication among the various players. Scholars at several land-grant universities specialize in components of China's agricultural economy, including production practices, market development, trade policy, competitiveness, and trade forecasting. USDA's Economic Research Service has a team of China specialists that also research important trends in China's agricultural economy, and the Foreign Agricultural Service tracks more day-to-day trends in China as well. Most international agricultural firms have an interest in the events in China, either as an export opportunity, potential competition, or an investment opportunity. These businesses also conduct research on specific markets in China. Interaction among the various parties involved in these pursuits provides an important opportunity to share results and discuss implications, enhancing our overall understanding of the complex set of issues facing U.S. agricultural producers vis-à-vis China.
The systematic assessment of important trends in China's agricultural economy, both in terms of its potential as a market and as a competitor for U.S. agricultural products has been greatly enhanced by the coordination of efforts via the Western Education/Extension and Research Activity (WERA)-101 (WERA-101). Over the last decade, WERA-101 has organized 10 highly successful conferences. Participation in these conferences ranged from 40 to over 100 and they have been held in venues throughout the United States. The conferences regularly include the most prominent scholars, government researchers, and industry representatives with knowledge of agricultural issues in China, from the United States, China and third countries. Presentations include original research papers, issue oriented presentations, and the experiences of private sector players in China. We propose that WERA-101 be continued to assist in the development of our knowledge of China's vast, complex and rapidly changing agricultural economy.
Objectives
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Foster a greater understanding of China's potential and ability to import and export agricultural products that are of interest to U.S. producers.
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Disseminate research on China's agricultural economy to a wide audience including policymakers, agri-business interests, researchers and students, via annual conferences sponsored by WERA-101.
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Enhance the bilateral network of U.S., Chinese and third country analysts with expertise and interests in China.
Procedures and Activities
1. Foster a greater understanding of China's potential and ability to import and export agricultural products that are of interest to U.S. producers.
Through the annual conference and on-going communication among committee and network members, leading China analysts exchange information, ideas and the results of their research. This, in turn, creates a synergy of sorts which improves understanding of the realities and prospects for China's agri-food sector- first among committee members and subsequently among the other commercial, academic and government networks committee members deal with.
The publication of the committee's annual conference proceedings is itself an important activity and outcome relating to the achievement of this objective. Through the proceeding's dissemination in both hardcopy and electronic format, greater understanding of China's potential and ability as both a market and a competitor in agri-food markets is fostered.
The committee also engages in outreach activities with counterparts throughout North America and elsewhere in the world. This levers the knowledge and understanding of committee members and their colleagues elsewhere. Committee members and their contacts elsewhere undertake the ground leve intelligence work and research which informs commercial interests, governments, and the public at large of the challenges and opportunities faced by and posed by China's agri-food sector. Networking and outreach activities are undertaken with the American Agricultural Economics Association, Farm Foundation, International Policy Council, U.S. - China Business Council, East Asian Economics Association, East Asia Institute (Singapore), ABARE (Australia), Asia Pacific Foundation (Canada), OECD, FAO, World Bank, CIES (Australia) and other domestic and international institutions and associations.
2. Disseminate research on China's agricultural economy to a wide audience
The annual conference provides a focal point for this committee. The annual conference itself is the first avenue by which we share and disseminate research. The conference also provides an important venue to exchange ideas and results from both completed as well as ongoing research and analysis. This cross fertilizatio allows synergies and complementarities in our joint work to emerge and also results in areas of duplication to be clearly identified and (subsequently) reduced, better leveraging the collective resources of the committee's research community.
The dissemination of the committee's annual publication in both hardcopy and electronically also provides significant exposure to the work it does. Such outreach has, on occasion, prompted collaboration between the committee and other agencies and institutions. In some instances, requests and suggestions for additional research and analysis on themes and subjects of interest have come about as a result of such exchanges. For example, at the request of partner institutions, committee members have undertaken work relating to rural credit and financial institutions (OECD, IFPRI), implications of changes in the agri-food value chain (ERS), implications of China's WTO accession (IATRC, OECD), institutional change and its implications (ERS, OECD), demographics and their implications for China's economy and agri-food sector (Ideals Institute, ADB), water and water management (World Bank, ERS), and rural infrastructure's role in enabling China's agri-food sector (World Bank, IFPRI, PECC, ADB). Many of these undertakings also involved collaborators in Chinese institutions, including (but not limited to): MOFCOM, MOC, MOA, MOWR, State Council DRC, CCAP, CAAS, CASS, etc. The results of these joint, complementary efforts by committee members and these collaborating institutions have been disseminated - and drawn upon for insights - world wide.
3. Enhance the bilateral network of U.S., Chinese and third country analysts
The approach of the committee and its constituent members makes maximum use of networking. The membership itself comprises a network of individuals from a wide range of institutions and backgrounds, bringing with them a diverse set of skills, experience and disciplines to be drawn upon. The conscious outreach component of the committee's work involves contact and, on occasion, collaboration with good number of international, Chinese, and third country institutions and analysts. In addition to American and Chinese analysts and researchers, scholars and analysts from various international agencies (eg. OECD, ADB, IFPRI, World Bank, etc) and countries (eg. Australia, Canada, France, Germany, Hong Kong, Italy, Singapore, etc) have participated in our conferences and communications.
Abbreviations and Acronyms
ADB - Asian Development Bank;
ERS - USDA Economic Research Service;
IATRC - International Agricultural Trade Research Consortium;
IFPRI - International Food Policy Research Institute;
OECD - Organization for Economic Cooperation and Development;
PECC - Pacific Economic Cooperation Council;
SC DRC - State Council Development Research Center;
NDRC - National Development and Reform Commission;
MOFCOM - Ministry of Commerce;
MOC - Ministry of Communications;
MOST - Ministry of Science and Technology;
MOA - Ministry of Agriculture;
MOWR - Ministry of Water Resources;
MLR - Ministry of Land Resources;
CCAP - China Center for Agricultural Policy;
CAAS - Chinese Academy of Agricultural Sciences;
CASS - Chinese Academy of Social Sciences;
CAS - Chinese Academy of Science;
Expected Outcomes and Impacts
- An annual workshop and the associated proceeding publication used to present and disseminate research findings and other information relevant to China's agricultural economy.
- Build on the relationships and linkages developed thus far by continuing to hold annual workshops on issues relevant to China's agricultural economy and the effects on U.S. producers.
- Joint research and publications, as has been the case in the past.
- Foster a more coordinated prioritization and division of labor across research area.
Projected Participation
View Appendix E: ParticipationEducational Plan
The annual WERA-101 workshop has become an important venue for scholars, students, government officials and industry representatives to discuss and debate trends and issues in China's agricultural production, consumption and trade and the impacts these might have on US producers. The venue also serves as a means for graduate and other students to learn more about China and present their research interests. In the past roughly 10-20 percent of the presentations have been given by students. In addition, the workshops are generally held in the vicinity of a major university and efforts are made to ensure that students from the local university, whether graduate or undergraduate, presenting or not presenting, can attend the workshop. Finally, information gained at WERA-101 is often germane to topics covered in the courses taught by participating faculty, thus makes its way back to classrooms all over the United States. In this way, WERA-101 not only has served as an educational mechanism for more senior participants, but also for many students interested in pursuing careers that involve agricultural issues in China. WERA-101 will continue to serve this role in the future.
Organization/Governance
WERA-101 operates under standard governance with a chair, vice-chair, and secretary. Operational management and clerical support comes from the IMPACT Center at Washington State University.
Literature Cited
Literature Cited:
Carter, C.A. " Research on Institutional Reform and Agricultural Productivity Growth in China," in A. Watson and C. Findlay (eds) Food Security and Economic Reform: The Challenges Facing China's Grain Marketing System. London: MacMillan, 1999.
Carter C.A. and F. Zhong. "Rural Wheat Consumption in China" American Journal of Agricultural Economics, Vol. 81, No. 3, August 1999.
Carter, C.A. and A. J. Estrin. " Market Reforms Versus Structural Reforms in Rural China," Journal of Comparative Economics, 29, 3, September 2001.
Carter, C.A. " China's trade Integration and Impacts on Factor Markets in China's Agriculture in the International Trading System," Paris: OECD, 2001.
Carter, C.A., and S. Rozelle. " Will China Become a Major Force in World Food Markets?" Review of Agricultural Economics, Vol. 23. No.2, 2001.
Carter, C.A., and X. Li. " Implications of WTO Accession for China's Agricultural Trade Patterns," Australian Journal of Agricultural and Resource Economics , Vol. 46, No. 2, June 2002.
Carter, C.A. and B. Lohmar. " Regional Specialization of China's Agricultural Production," American Journal of Agricultural Economics, Vol. 84, No. 3, August 2002.
Carter, C.A., J. Chen and B. Chu. " Agricultural productivity growth in China: farm level versus aggregate measurement," China Economic Review Volume 14, Issue 1, 2003, Pages 53-71.
Chern, W.S., C.A. Carter, and S. Shei (editors). "Food Security in Asia: Economics and Policies," Northampton: Edward Elgar, 2000.
Curtis, Kynda R., Jill J. McCluskey, and Thomas I. Wahl. " Is China the Market for GM Potato Products?" AgBioForum. 5(4)(2003):175-178.
Felloni, Fabrizio, John Gilbert, Thomas Wahl, and Philip Wandschneider. "Trade Policy, Biotechnology, and Grain Self-Sufficiency in China." Agr. Econ. 28(2003):173-186.
Fuller, Frank, John Beghin, Stéphane De Cara, Jacinto Fabiosa, Cheng Fang, and Holger Matthey. "China's Accession to the WTO: What Is at Stake for Agricultural Markets?" Review of Agricultural Economics, 25(Fall/Winter 2003):399-414.
Fuller, Frank, Dermot Hayes, and Darnell Smith. "Reconciling Chinese Meat Production and Consumption Data." Economic Development and Cultural Change, 49(October 2000):23-43.
Gilbert, John and Thomas Wahl. "Agricultural Liberalization Beyond Uruguay: US Options and Interests," in Global Agricultural Trade in the New Millenium, Edited by P. Lynn Kennedy and Won Koo, Food Products Press, 2002.
Gilbert, John and Thomas Wahl. "Applied General Equilibrium Assessments of Trade Liberalization in China." The World Economy. 25(5):697-731 (2002).
Han, Tong, Thomas I. Wahl, and Ron C. Mittelhammer. "The Effect of Self-Sufficiency on Fruit and Vegetable Consumption of China's Rural Households." Rev. Agric. Econ. 23 (2001):176-184.
Hansen, J., F. Fuller, and H.-H. Hsu. "Sources of Discontinuity and Uncertainty in Chinese Agricultural Data." In the Papers and Proceedings of the 12th Federal Forecasters Conference 2002. Debra E. Gerald (ed.), Washington, D.C.: U.S. Department of Education, 2003, pp. 335-343.
Hansen, J., F. Fuller, F. Gale, F. Crook, E. Wailes, and M. Thomas. "China's Japonica Rice Market and Competitiveness in Asian Markets," In Rice Situation and Outlook Yearbook. United States Department of Agriculture, Economics Research Service, (November 2002):32-37.
He, Xiurong and Thomas I. Wahl. " China's Agricultural Trade: 1980 to 2000," China's Rural Economy, (In Chinese) 6(2002):9-14.
Hu, Dinghuan, Frank Fuller, and Thomas Reardon. "The Impact of the Rapid Development of Supermarkets on the Dairy Industry in China." (In Chinese) Chinese Rural Economy, 7(Serial No. 235), 2004:12-18.
Li, Quan, Kynda R. Curtis, Jill J. McCluskey, and Thomas I. Wahl. " Consumer Attitudes Toward Genetically Modified Foods," in Beijing, China. AgBioForum. 5(4)(2003):141-152.
Wahl, Thomas I. and Tong Han. "China's Rural Household Purchasing Decisions for High-Valued Food Products: Implications for the U.S. Food Industry," Published in Agricultural Trade and Policy in China: Issues, Analysis and Implications, Edited by Scott D. Rozelle and Daniel A. Sumner, Ashgate Press, 2003.
Zhao, Fengqin, Thomas Wahl, and Holly Wang. "Trade Liberalization under China's WTO Accession: Implications for China's Market in the New Century," in WTO and the Challenges China Faces in the New Century. Edited by James Wen, The Peoples University Press, Beijing, China, August 2002.
Proceedings:
Wahl, Thomas I., and Brenda Sternquist. "China's Agricultural Sector: Markets, Myths and Mavens." Proceedings of the 2004 annual meeting of WCC-101, IMPACT Center, Washington State University, Pullman, 2004.
Wahl, Thomas I., and Cathy Durham. "Agribusiness and Food Marketing in China." Proceedings of the 2003 annual meeting of WCC-101, IMPACT Center, Washington State University, Pullman, 2003.
Wahl, Thomas I., Brian Lohmar and Brad Gilmour. "Changes in China's Agricultural Sector: Trade, Market, and Policy Reform." Proceedings of the 2002 annual meeting of WCC-101, IMPACT Center, Washington State University, Pullman, 2002.
Wahl, Thomas I. and Dan Sumner. "Agricultural Trade with China in the New Economic and Policy Environment." Proceedings of the April 2001 meeting of WCC-101, IMPACT Center, Washington State University, Pullman, June 2001.
Wahl, Thomas I. and Frank Fuller. "Chinese Agriculture and the WTO." Proceedings of the December 1999 meeting of WCC-101, IMPACT Center, Washington State University, Pullman, December 1999.
Wahl, Thomas I. and Colin Carter. "China's Role in World Food Markets." Proceedings of the February 1999 meeting of WCC-101, IMPACT Center, Washington State University, Pullman, August 1999.