China's Food Economy and Its Implications for the Rest of the World

Abstract

This article aims to gain a better understanding of the capacity of China to feed its growing population given its limited natural resources, and the impact of China's growing economy on rest of the world and vice versa. In order to reflect China's real food economy and reasonable assumptions, China's Agricultural Policy Simulation Model (CAPSiM) is used which can comprehensively and simultaneously account for the major driving forces and policies determining China's domestic food demand and supply. The influence of the linkages of China's economy with the rest of the world is examined by linking Global Trade Analysis Project (GTAP) and CAPSiM in two scenarios. This article points out that China's food economy is stable and health, and a stable and healthy China's food economy benefits not only China, but also the whole world.