Modernization of Chinese Agriculture

Abstract

HINA is preponderantly an agricultural country. Over 70 percent of her total population are engaged in farming. In 1936, one year before the outbreak of the war, 80 percent of her total exports consisted of agricultural commodities, which were valued at U. S. $167,000,000. Her imports of agricultural goods that same year amounted to U. S. $66,000,000, constituting 24 percent of her total imports. These figures clearly indicate that before the war, China's most important enterprise was agriculture. Now that the war is over and China has come out of it victorious, she will undoubtedly be industrialized. But it can be presumed almost certain that agriculture will remain the most important enterprise of China, that it will contribute most to ensure the people freedom from want and to raise the living standards and cultural levels of the rural population. Furthermore, the success of China's industrial development, which is now being vigorously encouraged, will depend to a great extent upon the progress of agriculture. First, inasmuch as agricultural exports amount to 80 percent of China's total exports, the logical way to provide means of paying for the importation of the capital goods required in her industrialization program is to increase agricultural production and exports. Secondly, inasmuch as it will be very difficult for China's infant industries to compete in foreign markets, foreign loans contracted for the purchase of machinery will also ultimately depend upon expanded agricultural exports. Last, but not least, since the farmers of China form the great majority of her potential domestic consumers, it is essential that their low purchasing power be increased so that the home industries will have an adequate domestic market. It is gratifying to say that this situation is now generally recognized in China. For instance, in the Sixth Plenary Session of the Kuomintang Congress, held in the fall of 1945, a declaration of policy was promulgated which placed equal emphasis on agricultural and industrial development. From this declaration, we can see that those who are assuming the helm of state have determined to launch new and effective measures for the development of agriculture. In order to attain this development, however, we have to have a program, and this should be designed to cover at least four