CNBC's The China Connection newsletter: Inside China's push to feed 1.4 billion people without U.S. crops
This report is from this week's CNBC's The China Connection newsletter, which brings you insights and analysis on what's driving the world's second-largest economy. You can subscribe here: https://www.cnbc.com/lander?id=chinaconnection-newsletter
The big story
In recent years, China has made significant strides in making farm-fresh produce more accessible to its citizens. Whether it's a box of apples or vacuum-sealed corn on the cob, online orders placed through popular e-commerce apps arrive in Beijing within just a couple of days.
While China's food safety standards are still evolving, the quality of locally sourced produce has improved. For instance, apples from nearby supermarkets may taste artificial, but those ordered from rural areas taste just like the ones I enjoyed in the U.S. This is a far cry from the ease of getting apples shipped from a New York orchard.
Farmers in Binzhou City, Shandong Province, were seen clearing snow from corn fields in January 2026, highlighting the challenges of farming in China's diverse climate.
The economic landscape behind this consumer experience is shaped by the U.S.-China trade tensions. The U.S. has repeatedly urged China to increase its purchases of American agricultural products, but tariffs imposed by the Trump administration have led to a decline in sales for many American farmers.
Soybeans, the largest U.S. agricultural export by value, have been at the center of these trade discussions. Despite the White House's efforts to set a deadline for new Chinese purchases, China's focus remains on food security and reducing reliance on other countries.
Corn, with its higher protein content, is emerging as a key player in this narrative. Chinese researchers are developing corn varieties that could significantly reduce the need for soybean imports, which are primarily used in animal feed for domestic meat production.
By 2030, China aims to reduce the use of soymeal in animal feed to just 10%, indicating a strong push towards self-sufficiency. This shift has also led to a focus on improving the quality of domestic soybeans rather than simply increasing planting.
Tech-driven agriculture
To address the challenges of limited arable land and a large rural population, China has embraced technology and targeted policies to achieve its food security goals. Despite having only about three-fourths the arable land of the U.S., China's policymakers are focused on maximizing yield per acre.
In rural China, while corn fields and tractors dominate, the countryside is also dotted with mountains and farmers working the land by hand. However, the difference for urban consumers is that these farms are more connected to the internet and high-speed trains.
Beijing's efforts to reduce poverty and ensure social stability in rural areas have spurred infrastructure development. E-commerce giants like JD.com and Pinduoduo have expanded into new rural markets, and companies like DJI have built a business around agricultural drones. Qicaihong, a tech company, has taken this a step further by expanding from China's Silicon Valley, Shenzhen, to a rural part of Yunnan province to standardize local corn production for broader markets.
Investor interest
The agricultural sector in China is attracting significant investor interest. Reports suggest that Syngenta, a Chinese-owned agritech giant, is attempting to go public again, this time in Hong Kong. The listing of 20% of the company would support investments in research and development, according to The Financial Times.
Syngenta's China business is making strides in domestic seed development, with 111 new varieties receiving national approval for commercial use in the quarter ending October 30. This global reach positions Syngenta to compete in the international market.
Despite the progress, long-held perceptions about China's food quality won't change overnight. As an urban consumer, I can now enjoy fresh produce delivered online, but the journey towards a fully self-sufficient food system is ongoing.
For American farmers, the rise of a more self-sufficient China may necessitate seeking new customers.
Top TV picks on CNBC
- Cheng Lu, CEO of CreateAI, discussed the integration of AI in video game creation, emphasizing the importance of pairing AI investments with practical applications.
- Eric Zheng, president of AmCham Shanghai, highlighted the significance of President Trump's early visit to China for potential commercial deals.
- Lenny Zephirin of The Zephirin Group noted that capital markets have absorbed the surge in Mainland Chinese companies going public through Hong Kong IPOs, with regulators minimizing market risks.
Need to know
- Trump-Xi Call: U.S. and Chinese leaders discussed Taiwan and trade late last week, ahead of Trump's anticipated trip to Beijing in the spring.
- Coffee Wars: Luckin Coffee opened its first premium drinks store in Shenzhen, intensifying competition with Starbucks, which is selling its China business to Boyu Capital.
- EV Struggles: Major Chinese electric car companies, including BYD, experienced a sales dip in January due to persistent sluggish demand.
In the markets
Chinese and Hong Kong stocks showed mixed results in afternoon trading on Wednesday, with investors seemingly disregarding concerns over artificial intelligence that affected U.S. benchmarks. Hong Kong's Hang Seng Index rose 0.43%, while the mainland CSI 300 index fell 0.11%. Technology and electric vehicle shares led the gains, with Xiaomi rising 4.72%, BYD advancing 3.86%, and Li Auto adding 3.23%.
For the year to date, the Hang Seng is up 6.51%, while the CSI 300 has gained around 1.9%. China's benchmark 10-year government bond yield slipped to 1.8%, and the offshore yuan was little changed at 6.9088 against the greenback.
