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Background Information on the Chinese Fruit Sector

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  • Thornsbury, Suzanne
  • Woods, Mollie
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    Abstract

    The People's Republic of China was established in 1949, ushering in an era of socialism and government centralization. Beginning in 1978, China's economy gradually transitioned from centralization to the transitional and somewhat more privatized society of today. Prior to 1978, government policies aimed at controlling food supplies and prices were common. Food rationing in 1953 was aimed at guaranteeing food for urban dwellers and included price administration by the government (Dong and Fuller, 2006). Agricultural productivity and the availability of food increased dramatically when laws that decentralized agricultural production were enacted in 1981. Food rationing and market centralization were abolished later in urban areas for non-staple food items, like meat, vegetables, and fruits, among others. All market centralization for food items in China was abolished in 1993. Privatization and market reforms throughout the late 1980s and into the 2000s made China the leading developing nation for Foreign Direct Investment (FDI) and positioned the country as an important global source of low cost labor in industries as diverse as food processing and electronics manufacturing (Yan, 2005). In 2004, approximately 28 percent of China's population was employed in the agricultural sector (Gao, 2007).

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    Bibliographic Info

    Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 9308.

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    Date of creation: 2007
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    Handle: RePEc:ags:midasp:9308

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    Web page: http://www.aec.msu.edu/agecon/
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    Keywords: Crop Production/Industries;

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    1. Fengxia Dong & Frank H. Fuller, 2007. "Changing Diets in China's Cities: Empirical Fact or Urban Legend?," Center for Agricultural and Rural Development (CARD) Publications 06-wp437, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    3. Dinghuan Hu & Thomas Reardon & Scott Rozelle & Peter Timmer & Honglin Wang, 2004. "The Emergence of Supermarkets with Chinese Characteristics: Challenges and Opportunities for China's Agricultural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 557-586, 09.
    4. Brian W. Gould & Hector J. Villarreal, 2006. "An assessment of the current structure of food demand in urban China," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 1-16, 01.
    5. Rae, Allan N. & Zhong, Funing & Zhou, Yingheng & Geng, Xianhui, 2006. "China's Expanding Role in Global Horticultural Markets," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31963, New Zealand Agricultural and Resource Economics Society.
    6. Rae, Allan N. & Zhong, Funing & Zhou, Yingheng & Geng, Xianhui, 2006. "China's Expanding Role in Global Horticultural Markets," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31963, New Zealand Agricultural and Resource Economics Society.
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