China investing $450 Billion in modernization of its agriculture industry.

[buzz]

I saw this on Reuters tonight, can China ever feed its population? Looks like they are going to try to become self sufficient or even able to export food.



The Agricultural Development Bank of China [AGDBC.UL], one of the country's main policy lenders, agreed to loan at least 3 trillion yuan ($450 billion) by 2020 for the modernization of China's agriculture industry, state media said on Sunday.

The Ministry of Agriculture and the bank, which lends in line with government policy, signed an agreement to protect national food security, support the sector doing business overseas and develop China's seed industry, according to the official Xinhua news agency.

It was not immediately clear whether this commitment is separate from the bank's plan announced in May to lend 3 trillion yuan for poverty reduction via agricultural investments.

The move reported on Sunday also aims to increase the agriculture industry's efficiency and foster rural income growth.

The Agricultural Development Bank of China will be responsible for managing financial services, including offering financial products and setting interest rates, said Xinhua.

Chinese state-owned company ChemChina earlier this month extended its offer to buy Swiss pesticides and seeds group Syngenta (SYNN.S) for $43 billion, a deal which sparked food security concerns in the U.S., though it later cleared regulatory hurdles there.

[fjlip]

They either own now, will try to buy and are owed by every country now, writing on the wall for the planet. Better be buddies, thanks Justin and Brad.

[errolanderson]

China's banking system has seriously flunked international stress tests.

This could impact export lines of credit and global trade of all commodities.

http://www.telegraph.co.uk/business/2016/09/18/bis-flashes-red-alert-for-a-banking-crisis-in-china/

[ajl]

This will not change much. China's central planning stands in the way of China ever becoming self sufficient. They will invest a lot but not get much bang for their buck as they will create orphan infrastructure like their ghost cities as bureaucrats, not individual, entrepreneurs will direct the investment. China's economy is as phony as a $3 bill and the ship will sink. Mind you they will be planning big right up to the end. They need to deregulate and go to a market economy with individuals spending their own money on projects instead. That will never happen.