China

The share of support to agricultural producers in gross farm receipts (%PSE) in the People’s Republic of China (hereafter “China”) has been decreasing gradually since 2016 after two decades of steady growth. The %PSE averaged 13.3% in 2017-19, reflecting policy reforms undertaken with respect to the market intervention systems for soybeans, rapeseed, cotton, and maize, as well as to the minimum purchase price system for wheat and rice. The nominal depreciation of the CNY vis-à-vis the USD since 2014, after a long period of gradual appreciation, has been another factor influencing the evolution of price gaps and thus contributing to stabilising levels of Market Price Support (MPS) in recent years. Payments based on area planted have been consistently increasing since 2014 as a result of the recent reforms, but MPS remains the dominant part of total support, generated through both domestic price support policy and various border measures on imports. MPS levels differ across imported commodities, while prices of exported commodities are not supported. The higher domestic producer prices, on average, indicate an implicit tax imposed on consumers, with a percentage Consumer Support Estimate (%CSE) of -9.9% in 2017-19.