Required Report - public distribution

**Date:** 1/8/2009

**GAIN Report Number:** CH9001

CH9001

**China, Peoples Republic of**

**Planting Seeds**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)William Westman

AgBeijing

**Prepared by:**

Jorge Sanchez & Zhang Lei

**Report Highlights:**

China's planting seed supply for its main crops, including grain (rice,
wheat, and corn), oilseeds (soybeans, rapeseed, and peanut), and cotton
in MY08/09 is expected to be sufficient with surplus for hybrid corn and
rice varieties. Imports of seeds for vegetable and fruit/melon are
expected to continue growing in MY08/09, while imports of grass and
sunflower seeds are forecasted to decline due to shrinking market demand
and abundant supplies. Three new seed standards came into effect in
2008. In July 2008, China announced an additional \$3 billion in state
support for the development of agricultural biotechnology over the next
15 years.

Includes PSD Changes: No

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 3](#production)

[General situation 3](#general-situation)

[Seed production and supply expected to be stable for MY08/09
3](#seed-production-and-supply-expected-to-be-stable-for-my0809)

[Seed industry reform and consolidation continues
5](#seed-industry-reform-and-consolidation-continues)

[Agricultural Planted Area and Yields
5](#agricultural-planted-area-and-yields)

[Trade 6](#trade)

[Grass and sunflower seed imports are expected to decline in MY08/09
7](#grass-and-sunflower-seed-imports-are-expected-to-decline-in-my0809)

[Vegetable seed imports are expected to slightly increase in MY08/09
7](#vegetable-seed-imports-are-expected-to-slightly-increase-in-my0809)

[Seed exports are expected to rise in MY08/09
8](#seed-exports-are-expected-to-rise-in-my0809)

[Marketing Entry and Promotion 8](#marketing-entry-and-promotion)

[Policy Issues 9](#policy-issues)

[No new amendments to China's Seed Law
9](#no-new-amendments-to-chinas-seed-law)

[Three new seed standards came into effect
9](#three-new-seed-standards-came-into-effect)

[Agricultural commodity import regulations remain in place
9](#agricultural-commodity-import-regulations-remain-in-place)

[Planting seed phytosanitary and licensing restrictions
10](#planting-seed-phytosanitary-and-licensing-restrictions)

[Seed tariffs and the value added tax (VAT)
10](#seed-tariffs-and-the-value-added-tax-vat)

[Plant variety protection (PVP) background and development
10](#plant-variety-protection-pvp-background-and-development)

[Intellectual property rights (IPR) issues for planting seed enterprises
12](#intellectual-property-rights-ipr-issues-for-planting-seed-enterprises)

[Biotechnology and planting seeds 12](#biotechnology-and-planting-seeds)

[Trade Tables 14](#trade-tables)

[Table 1 China\'s Imports from the World in Volume & Value
14](#table-1-chinas-imports-from-the-world-in-volume-value)

[Table 2 China\'s Imports from the U.S. in Volume & Value
15](#table-2-chinas-imports-from-the-u.s.-in-volume-value)

[Table 3 China's Major Seed Imports and Major Countries of Origins
16](#table-3-chinas-major-seed-imports-and-major-countries-of-origins)

[Table 4 China\'s Exports to the World in Volume & Value
18](#table-4-chinas-exports-to-the-world-in-volume-value)

[Table 5 China\'s Exports to the U.S. in Volume and Value
19](#table-5-chinas-exports-to-the-u.s.-in-volume-and-value)

[Table 6 China's Major Seed Exports and Major Countries of Origins
20](#table-6-chinas-major-seed-exports-and-major-countries-of-origins)

# Executive Summary

China's planting seed supply for its main crops, including grain (rice,
wheat, and corn), oilseeds (soybeans, rapeseed, and peanut), and cotton
in MY08/09 is expected to be sufficient with surplus for hybrid corn and
rice varieties. In MY08/09, hybrid corn and rice seed stocks are
expected to decline, and prices are forecast to increase. Imports of
seeds for vegetables and fruit/melon are expected to continue growing in
MY08/09, driven by both the diversified demands of domestic consumers
and vegetable exports. While imports of grass and sunflower seeds are
forecast to decline due to shrinking market demand and abundant
supplies. China's sunflower seed imports declined 29 percent in volume;
this decline is expected to continue due to shrinking acreage. China's
seed exports are forecast to continue growing in MY08/09 due mainly to
China's low cost structure for seed breeding operations. China's hybrid
rice seed (Rice Long Grain, H.S. 10061011) exports in MY07/08 increased
33 and 69 percent in volume and value respectively, mainly as a result
of the hybrid rice acreage expansion in Indonesia.

The national policy on foreign investment in the seed sector still
prevents any investment by foreign enterprises in the genetic
engineering (GE) planting seed sector, while investment for "main crop"
varieties is limited to a minority share. There have been no new
amendments to China's Seed Law. Three new seed standards came into
effect in 2008. In June 2008, the State Council of China released
"Outline of the National Intellectual Property Rights Strategy", which
defined new plant varieties as one of the major Intellectual Property
Rights (IPR) areas for protection. In July 2008, China announced an
additional \$3 billion in state support for the development of
agricultural biotechnology over the next 15 years.

# 

# Production

## 

## General situation

China continues to be one of the world's largest seed producers:
self-sufficient in planting seeds for its main crops, including grain,
major oilseeds, and cotton. This trend is likely to continue throughout
MY08/09 and well after. Although official seed production statistics are
not available, industry sources estimate annual seed use at 12.5 million
metric tons (MMT). Commercial seeds are estimated at 3.5 MMT, hybrid
corn seed takes the largest market share at one MMT, followed by hybrid
rice seed at around 250,000 MT. China's total seed market value is
estimated at \$7.2 billion, among which, corn, rice, and vegetable seeds
account for over 70-percent. Hybrid corn, hybrid rice, vegetable, and GE
cottonseed are all commercially produced.

The seed self-sufficiency rates for rice, corn, wheat, and soybeans are
close to 100 percent with abundant stocks, cotton seeds at 85 percent
(the remaining 15 percent is likely to be met by international joint
ventures (JVs) that develop seeds in China) and vegetable and
fruit/melon seeds at 95 percent. The traditional practice of
farmer-saved seeds for major crops continues to decline due to
government subsidy programs that encourage the use of high quality
seeds. According to China's Ministry of Agriculture (MOA), in MY07/08,
high quality seed varieties covered 96 percent of the market, and
accounted for about 40 percent of China's total agriculture production
growth. China's low labor costs enables it to produce hybrid seeds for
overseas markets at a lower cost compared to other countries.

## Seed production and supply expected to be stable for MY08/09 

Maintaining a stable supply of high quality seeds for major grain crops
is a stated priority for China's relevant agencies. Industry sources
expect seed production for all major crops in MY08/09 to meet domestic
demand with surpluses for corn and rice. Additionally, high quality seed
variety coverage exceeded 96 percent of the planted area. According to
MOA, hybrid corn and rice seeds production in MY07/08 exceeded demand
due to better yields resulting from favorable weather conditions.

MOA conducts a quality sample survey for grain crop seeds each year. The
results from the latest survey conducted in November of 2007 showed that
seeds that met the national quality standard were 94 percent for hybrid
corn and 99 percent for hybrid rice. The survey included 138 corn
samples from 93 seed companies and 88 hybrid rice samples from 61 seed
companies nationwide. For corn seed, all samples are tested for
cleanliness, germination percentage, and moisture content but only 94
percent qualify for seed variety purity. Hybrid rice seed is in a
similar situation. MOA concluded that the most prominent quality concern
for hybrid corn and rice seed is variety purity.

Rice -- According to MOA, the 2008 hybrid rice seed area is estimated at
63,000 Hectares (Ha) with production at 209,000 MT. Together with the
82,000 MT of carry-in stocks, total supply will likely reach 291,000 MT
during MY08/09. Hybrid rice seed demand in MY08/09 is forecast at
244,000 MT, with ending stocks of 47,000 MT. Sichuan, Hunan, Guangxi,
Jiangsu, and Hainan provinces are major hybrid rice seed producers in
China, accounting for 72 percent of the total hybrid rice seed acreage.
According to MOA, the average price of hybrid rice seeds in 2008
decreased 3 percent (\$0.05/1b) from 2007. Two-line hybrid rice seed
producing acreage is expanding year by year driven by higher prices;
this trend is expected to continue through 2009. Industry sources
indicate hybrid rice's planted area for 2008 is estimated at 1.8 MHa,
expanding slightly from the previous year and accounting for 59 percent
of China's total rice area, as compared to the 55 percent in 2007.
China's northeast area (Heilongjiang, Liaoning, and Jilin provinces)
usually plant conventional (not hybrid) single crop japonica varieties
due to its cold climate.

Corn--- According to MOA, the 2008 hybrid corn seed area is estimated at
200,000 Ha with production at 1.02 MMT. Together with the 610,000 MT of
carry-in stocks, total supply will likely reach 1.63 MMT by MY08/09.
Hybrid corn seed demand is forecast at 1.1 M MT, with ending stocks of
530,000 MT. MOA reported that the average price of hybrid corn seeds in
2008 increased 6 percent (\$0.04/1b) from 2007 as a result of declining
stocks. Industry is satisfied with the current availability of stocks
compared with previous years; for example, the 900,000 MT in 2006 and
700,000 MT in 2007; plus abundant stocks in 2008. Gansu, Xinjiang, Inner
Mongolia, Liaoning, and Heilongjiang provinces are major hybrid corn
seed producers in China, accounting for 76 percent of total acreage.
Hybrid corn varieties dominate China's seed corn use.

MOA forecasts that the prices of both hybrid rice and corn seeds will
increase in 2009 because: 1) hybrid rice and corn seeds were lower
priced in recent years due to fierce competition drawing down prices as
a result of abundant supplies in the market; 2) the over supply
situation is expected to ease in 2009; and, 3) government procurement
prices for hybrid rice and corn seeds will increase. MOA also announced
its ideal expectation of hybrid corn and rice seeds: for hybrid corn
seeds, plantation acreage is at 247,000-253,000 Ha, stocks at
250,000-300,000 MT; for hybrid rice seeds, plantation acreage at
83,000-87,000 Ha, stocks at 40,000 MT.

Wheat\--The majority of wheat seeds are conventional varieties, most of
which are produced in China's northern provinces. Industry sources
reported that about 70 percent of wheat farmers purchased commercial
seeds as a result of the national seed subsidy program.

Cotton -- The cotton seed breeding sector is increasingly industrialized
and commercialized. In 2007, the planted area for biotech (BT) varieties
was 3.8 MHa, accounting for 69 percent of China's total cotton planted
area. In the Yellow River region, BT varieties coverage reached close to
100 percent according to provincial government sources. Some industry
sources estimate that the market share for domestic BT cotton varieties
for 2008 continued to dominate at 80 percent although no official data
is available. Some Chinese sources claim that Chinese-produced BT cotton
varieties are more suitable and tailored to the local environment and
lower in price compared to imported varieties.

## 

## Seed industry reform and consolidation continues

Seed production and marketing continues to be fragmented, but the trend
for restructuring the sector is quickly accelerating. Industry sources
report that China has over 7,200 licensed seed trading entities,
declining from the 8,500 in 2006. Over 100 entities integrate seed
breeding, production, and nationwide sales network; 70 entities
registered for seed import/export. On May 19, 2006, China's State
Council issued GuoFaBan (2006) No. 40 decree on "Recommendations on
Expediting Seed Management Reform and Strengthening Marketing
Supervision". The Decree mandates that the "Complete Segregation of all
Seed Trading Entities from Agricultural Administrative Agencies" should
be completed before the end of June 2007, as traditionally most seed
trade entities were affiliated with agriculture bureaus (more background
provided in CH6104). According to the latest information released by MOA
in December 2008, 1,986 state-owned seed entities have segregated from
agricultural administrative agencies accounting for 85 percent of total
agricultural administrative managed seed entities. MOA also reported
that more than 8,600 seed cases were disposed, and 3,000 seed varieties
ceased production since Guofaban (2006) No. 40 Decree was released.

The fragmented seed market is the result of China's old planned economy,
which created a model of segregated research/development, breeding, and
marketing activities. Better integration of variety research and
development, seed breeding, and the distribution chain remain a key goal
for policy makers, industry associations, and research institutes.
Although in recent years there has been significant consolidation in the
industry, it may take years before flagship enterprises replace the
thousands of small players. Industry contacts estimate the market share
of "the 10 largest" seed enterprises at 20 percent. Industry sources
also indicated that the consolidation trend within the seed industry has
been slow and chalked with inefficiencies due to their low research and
development capacity. A few of these companies have established
comprehensive variety development, seed breeding, and marketing systems.
Few, however, have their own research and development facilities. Some
of these companies exclusively handle seed sales and marketing. The
traditional seed breeding and distribution model still prevails.
Developers are mostly state or provincial sponsored agricultural
research institutes and universities, while seed companies are
responsible for breeding and marketing seeds to farmers. It is worth
noting that researchers and developers are increasingly involved in seed
breeding and marketing through established breeding enterprises. Some
new seed companies also have set up independent research facilities,
which enable them to develop their own new varieties and retain
intellectual property rights.

# 

# Agricultural Planted Area and Yields 

Total sown area for all crops is generally stable at more than 150
million hectares. Grains and oilseeds take up the largest share, but the
planted area for vegetable and other horticultural products is
increasing. Total sown area for all crops is unlikely to fluctuate
dramatically because of the limited availability of arable land per
capita. However, the planted area designated for individual crops may
vary slightly from year to year in response to the market situation.

The table below indicates China's grain targets by 2020 according to
China's National Framework for Medium-to-Long-Term Food Security
(2008-2020), which was released by the State Council in November 2008.

Table 1. China's Grain Targets by 2020

+----------------------+---------------+---------------+---------------+
|                      | 2007 (MHa)    | 2010 (MHa)    | 2020 (MHa)    |
+----------------------+---------------+---------------+---------------+
| Cultivated land area | 122           | \>=120        | \>=120        |
|                      |               |               |               |
| \- for grain         | 74.7          | \>73.3        | \>73.3        |
| plantation           |               |               |               |
+----------------------+---------------+---------------+---------------+
| \*Grain sown area    | 106           | 105           | 105           |
|                      |               |               |               |
| \- for \*\*cereal    | 85.9          | 84.6          | 84            |
+----------------------+---------------+---------------+---------------+
| Oilseed sown area    | 11.3          | 12            | 12            |
+----------------------+---------------+---------------+---------------+
| Grain yield (kg/ha)  | 4,743         | 4,875         | 5,250         |
+----------------------+---------------+---------------+---------------+
| Total grain          | 501.6         | \>=500        | \>540         |
| production (MMT)     |               |               |               |
|                      | 456.3         | \>=450        | \>=475        |
| \- of which, cereal  |               |               |               |
+----------------------+---------------+---------------+---------------+

(\*\* cereal includes rice, wheat, corn, sorghum, millet, etc; grain
includes cereal, soybean, and tubers)

Table 2. Agricultural Crop Sown Area in Million Hectares

<table>
<colgroup>
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 11%" />
<col style="width: 9%" />
<col style="width: 11%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
</colgroup>
<tbody>
<tr class="odd">
<td>Year/Crop</td>
<td>Rice</td>
<td>Wheat</td>
<td>Corn</td>
<td>Soybeans</td>
<td>Cotton</td>
<td>Rapeseed</td>
<td>Tubers</td>
<td>Peanut</td>
<td>Vege-tables</td>
<td><p>Sun-</p>
<p>flower</p></td>
</tr>
<tr class="even">
<td>2002</td>
<td>28.2</td>
<td>23.9</td>
<td>24.6</td>
<td>9.6</td>
<td>4.2</td>
<td>7.1</td>
<td>9.9</td>
<td>4.9</td>
<td>17.4</td>
<td>NA</td>
</tr>
<tr class="odd">
<td>2003</td>
<td>26.5</td>
<td>22</td>
<td>24</td>
<td>9.5</td>
<td>5.1</td>
<td>7.2</td>
<td>9.7</td>
<td>5.1</td>
<td>18</td>
<td>1.2</td>
</tr>
<tr class="even">
<td>2004</td>
<td>28.4</td>
<td>21.6</td>
<td>25.4</td>
<td>9.6</td>
<td>5.7</td>
<td>7.3</td>
<td>9.5</td>
<td>4.7</td>
<td>17.6</td>
<td>0.9</td>
</tr>
<tr class="odd">
<td>2005</td>
<td>28.8</td>
<td>22.8</td>
<td>26.4</td>
<td>9.6</td>
<td>5.1</td>
<td>7.3</td>
<td>9.5</td>
<td>4.7</td>
<td>17.7</td>
<td>1</td>
</tr>
<tr class="even">
<td>2006</td>
<td>28.9</td>
<td>23.6</td>
<td>28.5</td>
<td>9.3</td>
<td>5.8</td>
<td>6.0</td>
<td>7.9</td>
<td>4.0</td>
<td>16.6</td>
<td>1</td>
</tr>
<tr class="odd">
<td>2007</td>
<td>28.9</td>
<td>23.7</td>
<td>29.5</td>
<td>8.7</td>
<td>5.9</td>
<td>5.6</td>
<td>8.1</td>
<td>3.9</td>
<td>17.3</td>
<td>0.7</td>
</tr>
</tbody>
</table>

Crop yields remain stable, despite new hybrids and innovations in the
planting seed sector. Some experts suggest that as more farmers migrate
to cities, the reduction of in-farm labor, coupled with inadequate
rotation could inhibit genetic improvements and ultimately output.
Still, China's cotton yield remains high and is likely to increase
further along with the adoption of biotechnology. If the government is
to achieve its target by increasing its yield by 11 percent by 2020,
then it must encourage the development and planting of new high-yielding
varieties that require fewer inputs.

Table 3. Agricultural Crop Yields in Metric Ton per Hectare

  ----------- ------- ------- --------- ---------- --------- ---------- ---------
  Year/Crop   Rice    Wheat   Corn      Soybeans   Cotton    Rapeseed   Peanut

  2002        6.2     3.8     4.9       1.7        1.17      1.48       3.01

  2003        6.1     3.9     4.8       1.6        0.95      1.58       2.65

  2004        6.3     4.3     5.1       1.8        1.11      1.81       3.02

  2005        6.3     4.3     5.3       1.7        1.13      1.79       3.08

  2006        6.2     4.55    5.4       1.7        1.29      1.83       3.25

  2007        6.4     4.6     5.2       1.6        1.29      1.87       3.30
  ----------- ------- ------- --------- ---------- --------- ---------- ---------

# 

# 

# Trade

China imported 27,127 MT of planting seeds in MY07/08, valued at \$136
million, increased 2 and 11 percent respectively from the previous year.
Vegetable/fruit, grass (rye grass, fescue, clover, and kentucky) and
sunflower seeds are the top three categories of China's seed imports. In
MY07/08, China's seed exports totaled 42,623 MT, and were valued at
\$113 million, an increase of 28 and 29 percent respectively from the
previous year. Vegetable/fruit and rice seeds also contributed to the
largest shares of China's seed exports.

## Grass and sunflower seed imports are expected to decline in MY08/09

Although most industry sources expect grass seed imports to increase in
the longer term, because of pastureland restoration projects in the
western provinces and landscaping in China's burgeoning cities
continues, the market for MY08/09 is looking bearish due to the gloomy
macroeconomic financial situation worldwide. Although China committed
\$580 billion in their economic stimulus plan, which includes tremendous
investment into infrastructure, grass plantation usually comes second to
building roads or other public projects. Industry doubts the grass seed
demand from China's road building plan will occur in 2009. Golf courses,
the other large consumer of grass seed, will not be well funded in 2009
as most of China's golf courses receive financial support from real
estate agencies. China's real estate market is also experiencing a
decline due to the financial crisis.

China's sunflower planting seed imports declined 29 percent in volume in
MY07/08 from the previous year, and the decline is expected to continue
in MY08/09 due to the shrinking sunflower acreage. Domestic oil seed
prices soared in 2007, oil seeds including sunflower acreage expanded in
2008. However, profitability in 2008 was low because of abundant
supplies. Industry forecasts China's sunflower acreage will decline
about 30 percent in 2009, which will result in lower sunflower seed
imports in MY08/09.

## Vegetable seed imports are expected to slightly increase in MY08/09

Vegetable and fruit/melon seeds are produced throughout China which
enables them to be bred and marketed to suit local preferences and
requirements. However, imports of various vegetables and fruit/melon
seeds are also expected to continue growing to meet the diversified
demands of consumers. Export-oriented vegetable seed production is
concentrated in the eastern China provinces, mainly in Shandong. Seed
breeding is outsourced to China by foreign companies mainly from Japan,
EU, and the United States because of relatively lower production cost.

China's vegetable seed imports for MY08/09 are forecast to increase
slightly over the previous year. Increased vegetable seed imports
reflect a more diversified demand for varieties by consumers with higher
disposable incomes. The trend is also driven by strong growth of
vegetable exports. China has been the largest vegetable exporter. Japan
is the largest market for China's vegetable seeds, distantly followed by
the United States. China's vegetable exports are expected to continue
increasing despite a depressed world economic outlook. Many industry
experts believe vegetable seed imports will continue growing in next few
years, especially the most popular varieties of onions, asparagus,
squash, egg plant, and tomato. Japan continued to be the largest
supplier of vegetable seeds to China with a total export value of \$17
million in MY07/08, up from \$15.5 million in MY07/08, followed by the
United States at \$9.6 million. Thailand ranked as the highest seeds
exporter to China in terms of volume at 2,843 MT in MY07/08.

In MY08/09, seed imports from the United States are forecast to decline
mainly due to weak demand for grass and sunflower seeds. MY07/08 imports
from the United States declined to \$48 million from the \$51 million in
MY06/07. This decrease is attributed to the decline in sunflower seed
imports, which dropped by 44 percent to \$7.7 million in MY07/08 from
the previous \$13.8 million in MY06/07.

## Seed exports are expected to rise in MY08/09

Seed exports are forecast to continue growing in MY08/09 due mainly to
China's low cost structure for seed breeding operations. Total seed
exports for MY07/08 rose rapidly to \$113.5 million from the \$88.3
million for MY06/07. Vegetable, rice, and fruit/melon seed export values
continue to rank the highest, accounting for 40, 23, and 10 percent,
respectively.

China's hybrid rice seed (Rice Long Grain, H.S. 10061011) exports in
MY07/08 amounted to 19,781 MT, valued at \$26.5 million, up 33 and 69
percent respectively from the previous year. Indonesia is the largest
contributor to the jump, who imported 2,700 MT in MY07/08, while only
126 MT in MY06/08. According to industry sources, Indonesian government
has promoted Chinese hybrid rice to increase local grain production. The
promotion made great progress in 2008, and the industry is expecting
hybrid rice seed exports to Indonesia to increase rapidly with the
hybrid rice acreage expanding in Indonesia. Some media reported that the
Indonesian government plans to expand its hybrid rice acreage to one
million Ha by 2009, which presents a demand for 15,000 MT hybrid rice
seeds. At present, Vietnam is the largest market for China's hybrid rice
seed, accounting for about 60 percent of China's total rice seed
exports. Industry contacts reported that hybrid rice seed exports to
other Asian countries are likely to increase steadily in the foreseeable
future due to China's technical advantages and the successful
adaptability of China's hybrid rice to climate and the local
environment.

In MY07/08, the United States, the Netherlands, and South Korea were the
three largest export markets for China's vegetable seeds in terms of
value. South Korea, however, ranked first in volume. Strong exports
reflect China's price advantage in seed breeding whether these are
imported (for re-export) or new domestic varieties. According to MOA,
contracted seed breeding by foreign seed trade companies is increasing
along with the improved implementation of regulations on the "Protection
of New Plant Varieties".

# Marketing Entry and Promotion

China's onerous investment, import, and marketing laws and regulations
for the planting seed sector remain unchanged. The national policy on
foreign investment in the seed sector (CH2012 and CH7048) still prevents
any investment by foreign enterprises in the GE planting seed sector,
while investment for "main crop" varieties is limited to a minority
share. Many foreign seed companies, however, have established
representative offices in China. They normally work with a few
importers, but establish vast networks and relationships with seed
wholesalers and vendors in regions or markets with the best potential.
When introducing new varieties to China, companies usually demonstrate
seed quality in trial plots before they decide which varieties to market
to farmers. Demonstration trials are the best way to showcase farmers
the advantages of newly developed varieties. This is commonly done by
domestic seed enterprises. Local officials/experts and farmers are
usually invited and briefed, especially during harvest season. Another
effective tool is to provide free seeds to farmers or farmer
cooperatives for trial planting. For instance, seed traders in China's
western provinces introduced several sunflower varieties from the United
States and other countries for trial planting before they decided to
select which varieties to import. For the most part, farmers purchase
seeds from local county or village level seed stations. Seed vendors
mainly promote the seeds that have the highest profit margins;
therefore, it is important to note that price is an important concern
when marketing seeds to small-scale household farmers.

In recent years farmer cooperatives have facilitated the dissemination
and trade of BT cotton seeds. A newly adopted legislation passed by the
National People's Congress is expected to benefit farmer cooperatives on
production and marketing. Cooperatives will also help farmers become
more self-sufficient and market-oriented.

Trade shows are another way to expose farmers to new varieties. For
example, China's National Agriculture Technology Extension Center/MOA
and the China Seed Association both sponsor an annual national seed fair
with support from the leading (mainly domestic) seed companies. The fair
principally focuses on main crops but also include vegetable and fruit
seeds/varieties. The 2008 fair was held in Zhengzhou, Henan Province, in
October. Shouguang in Shandong Province, is the largest vegetable
producer in China, and it is also the origin of greenhouse in China.
Shouguang has hosted "China (Shouguang) International Vegetable Sci-tech
Fair" since 2000. The Fair opens April 20 each year, the largest
vegetable fair in China, presents great opportunity for vegetable/melon
seed traders. More information on the fair is available at:
<http://www.intvegetable-fair.com/>

# 

# Policy Issues 

## No new amendments to China's Seed Law 

In August 2004, China published changes to Articles 17 and 33 of its
Seed Law (GAIN CH4063 and CH0031). The Seed Law Implementation Measures
(CH1052) and the Interim Articles from Crop Seed (seedling) Import and
Export (CH4060) were not affected. Nevertheless, MOA said some problems
surfaced along with the rapid development of the seed sector. Industry
sources said the problems focus on "new variety approval structure",
"market access mechanism" and "market management system". In response to
some questions raised by the industry, on January 26, 2006, MOA issued a
circular clarifying the definition and coverage of some articles of the
Seed Law. There have been no reports on additional amendments to the
Seed Law thereafter.

Industry sources report there is no significant improvement to the
enforcement of the Seed Law and relevant rules and regulations. Industry
sources reported that the low threshold for new variety review and
approval provoked IPR infringement. Along with the increased
applications for new varieties, more "new varieties" share similar
characters and traits.

Labeling -- China's National Standard "General Directive for Labeling of
Agricultural Seeds" took effect on November 1, 2006. In general, the
standard was a combination of the existing rules and regulations. As of
this report, there have been no complaints by seed traders on the
enforcement of the standard.

## 

## Three new seed standards came into effect 

Seed of food crops -- Part 1: Cereals (GB4401.1-2008), Seed of economic
crops -- Part 1: Fiber species (GB4407.1-2008) were published on April
14, 2008 and came into effect on September 1, 2008. Seed of economic
crops -- Part 2: Oil species (GB4407.2-2008) was published on June 28,
2008 and came into effect in December 1, 2008. An unofficial translation
of these standards as a GAIN report will be published shortly.

## 

## Agricultural commodity import regulations remain in place 

China's Animal and Plant Quarantine Law (CH1051), its Implementation
Regulations (CH3110), the Administrative Measures (CH2039), and the
"Items on Handling Review and Approval of Entry Animal and Plant
Quarantine" (CH4020) establish procedures for importers wishing to
purchase propagating material, including seed. Essentially, importers
must apply for a Quarantine Import Permit (QIP) before signing any
contract. Only with a QIP (valid for six months), is it permissible to
sign a contract to import seeds.

## 

## Planting seed phytosanitary and licensing restrictions 

Corn and soybean seed imports from certain countries including the
United States are still prohibited because of quarantine restrictions on
"Stewart's Wilt" and "Phytophthera Megasperma". (Additionally, China has
not yet approved any biotech corn and soybean varieties for
environmental release). As for other planting seeds, both the
requirements for "main crops" variety approval, as well as licensing
requirements for seed production and marketing, place arbitrary
restrictions on the seed trade.

Exporters of U.S. planting seeds should contact the USDA Foreign
Agriculture Service Planting Seeds Group
([www.fas.usda.gov/cots/seeds.html]{.underline}), APHIS officers
([www.aphis.usda.gov/is/tst/RegionThree.html](http://www.aphis.usda.gov/is/tst/RegionThree.html)),
and the American Seed Trade Association
([www.amseed.com/](http://www.amseed.com/)) and the Oregon Seed Council
([forages.oregonstate.edu/organizations/seed]{.underline}) to understand
the process and regulations for planting seed exports to China.
Exporters should be aware, however, that final import approval of any
product is subject to the importing country's rules and regulations as
interpreted by border officials at the time of product entry. Therefore,
it is particularly valuable to ensure that importers are familiar not
only with published rules but also the customary practices.

## Seed tariffs and the value added tax (VAT) 

China has tariff-rate quotas for seed wheat, rice, corn, and a few other
non-grain commodities[^1]. In-quota wheat, corn, and rice seed is
subject to a 1 percent tariff rate, while all other planting seeds enter
tariff-free. Out-of-quota tariffs for seed corn are 20 percent, while
out-of-quota tariffs for wheat and rice are 65 percent (See CH6036).

The VAT-free policy on seed imports took effect in 2006, and will remain
in place during China's "11^th^ Five-Year Plan" (2006-2010) period. The
VAT exemption procedure, however, lacks transparency and efficiency.
Industry sources report that, in the current VAT-free regime, within
each year of the plan, usually during April or May, the relevant
government offices send circulars or other internal notices to customs
officials confirming what products and companies have VAT-free status.
There are also tedious procedures for a company to be registered in the
importation of seeds. This confusing system leads to an unstable market
because importers and the companies they represent cannot book seeds for
shipment from the beginning of the year to the time the Customs Offices
are notified by the above-mentioned VAT Exemption Circular/Notice.

## 

## Plant variety protection (PVP) background and development 

China became the 141st member of International Plant Protection
Commission (IPPC) on October 20, 2005. The official liaison office is
affiliated with MOA. China has legally recognized the 1978 version of
the International Convention for the Protection of New Varieties of
Plants (UPOV) effective since October 1, 1997 (CH7023). MOA and SFA are
responsible for reviewing PVP applications. China's UPOV membership
obligates China to honor, sui generis, the breeders' rights for
registered and approved novel, distinct, uniform and stable (DUS) seeds.

+----------------------------------+-----------------------------------+
| ####### Gov                      |                                   |
| ernment Offices Responsible for  |                                   |
| PVP Applications and Development |                                   |
+----------------------------------+-----------------------------------+
| Ministry of Agriculture PVP      | State Forestry Administration's   |
| Office                           | PVP Office                        |
+----------------------------------+-----------------------------------+
| No. 11 Nongzhanguannanli         | No. 18 Hepingli Dong Jie          |
+----------------------------------+-----------------------------------+
| Chaoyang District                | Chaoyang District                 |
+----------------------------------+-----------------------------------+
| Beijing, China 100026            | Beijing, China 100714             |
+----------------------------------+-----------------------------------+
| Tel: 86-10 64193029/65927554     | Tel: 86-10 84238883               |
+----------------------------------+-----------------------------------+
| Fax: 86-10 64194661              | Fax: 86-10 64213084               |
|                                  |                                   |
| E-mail:chenhong@agri.gov.cn      | E-mail:webmaster@cnpvp.net        |
+----------------------------------+-----------------------------------+
| Web:                             | Web:                              |
| [www                             | [www.                             |
| .cnpvp.cn](http://www.cnpvp.cn/) | cnpvp.net](http://www.cnpvp.net/) |
+----------------------------------+-----------------------------------+
| Web2:                            |                                   |
| [www.stee.agri.gov.c             |                                   |
| n](http://www.stee.agri.gov.cn/) |                                   |
+----------------------------------+-----------------------------------+

MOA reports that from the time it began accepting applications in 1999
through November 30, 2008, the PVP office received 5,441 applications
for new PVP. At present, 1,866 applications have been completely
reviewed and approved. The greatest number of applications and approvals
are for major field crops including corn, rice, wheat, soybeans, and
rapeseed (in this order). See table 5 below for details on PVP
applications and approvals from MOA. Agricultural research institutes
and universities/colleges filed 50 percent of the applications as
compared to the 45 percent by domestic seed enterprises and individuals.
Additionally, 24 out of the 264 foreign applications received for new
PVP were reviewed and approved. Till now, the Netherlands has applied
for 123 new plant varieties in China, followed by the United States at
38 and South Korea at 30.

Table 5. MOA PVP Applications and Approvals

  ----------------------------- --------------------- --------------------
  Plant                         Application           Approval

  Rice                          1,662                 703

  Corn                          2,004                 717

  Wheat                         507                   184

  Cotton                        203                   0

  Soybean                       179                   49

  Other major crops             250                   78

  Vegetable                     242                   66

  Flower                        247                   28

  Fruit                         134                   41

  Others (pasture and tea)      13                    0

  Total                         5,441                 1,866
  ----------------------------- --------------------- --------------------

At present, there is one MOA distinctiveness, uniformity, and stability
(DUS) testing center, 14 DUS sub-centers, and 21 State Forestry
Administration (SFA) testing agencies around the country. According to
MOA and SFA, more new testing laboratories will be established in the
"11^th^ Five-Year" period. To ensure scientific and authoritative
determination of plant variety rights, China formulated guidelines for
testing 80 new varieties of plants, including corn, rice, poplar and
peony, of which 18 have been promulgated and implemented as the
"national or industrial standards".

On January 18, 2006, the National Technical Committee for New Plant
Variety Testing Standardization was established. The committee is
affiliated with MOA but includes experts from SFA and the Ministry of
Science and Technology (MOST), and is aimed to lend technical support
for PVP management practices.

On October 10, 2007, MOA published \"The Implementation Rules for the
Regulations on Protection of New Plant Varieties (Agriculture Part)".
The new rules governing the application and review process for the
registration of new plant varieties falling under the responsibility of
MOA took effect on January 1, 2008. These rules do not apply to plant
genus and species that are registered by the SFA. Please refer to
[CH7088](http://www.fas.usda.gov/gainfiles/200711/146293049.pdf) for
unofficial translation of the document.

## Intellectual property rights (IPR) issues for planting seed enterprises 

In June 2008, the State Council of China released "Outline of the
National Intellectual Property Rights Strategy", which defined new plant
varieties as one of the major IPRs. The Outline stated new plant
varieties issue as below:

*New Varieties of Plants*

*　　Establish an incentive mechanism to support the cultivation of new
varieties of plants and to facilitate the transformation of innovative
findings in breeding of new plant varieties. Establish a number of
breeding bases who own rights in new varieties of plants. Improve
technology support systems related to new varieties of plants. The work
of formulating the guidelines for the conduct of tests of new varieties
of plants needs to be expedited. The examination and testing level needs
to be raised.*

*　　Make the balance of interests among resource suppliers, breeders,
producers, and business operators more rational, with the emphasis on
the protection of lawful rights and interests of farmers. Strengthen the
awareness of the need to protect the new plant variety rights among
breeding bases and farmers to ensure that the variety rights owners,
producers, and sellers of new varieties and farmers have all benefited.*

Despite the implementation and enforcement of IPR laws and regulations,
IPR infringement and counterfeit cases occur frequently. According to
MOA, cumulatively IPR infringement and counterfeit cases reached 299 and
564 as of the end of 2004, respectively. Though no official statistics
are available for recent years, industry sources said the situation has
seen slight improvement in the past two years. It is increasingly
popular for seed traders to purchase new varieties directly from the
developers including research institutes and universities. China's
industry sources report that trademark and copyright registration would
facilitate marketing and IPR protection.

GAIN report CH2049 provides information on how to access UNOFFICIAL
English translations of China's Copyright Law, Trademark Law, and Patent
Law along with the Implementation Regulations or Enforcement Measures
for each of the aforementioned.

## Biotechnology and planting seeds 

In July 2008, China's Premier Wen Jiabao announced an additional \$3
billion in state support for the development of agricultural
biotechnology over the next 15 years. This signals China's intent to use
biotechnology as a key means to address food security concerns and
re-affirm its position that the technology can be used safely. This
strong pro-biotech policy suggests that major food crops may soon break
free from a long regulatory limbo and be permitted for planting. A move
to allow the planting of biotech food crops (rice, corn, and soybeans,
in particular) could significantly alter Chinese production and the
rural economy in the coming years. However, concerns still remain about
the transparency in China's biotechnology regulatory and approval system
and its ability to evolve with this rapidly changing technology. Premier
Wen Jiabao also stated his support for the development of transgenic
engineering in an interview with Science Magazine, and indicated that
science should not be linked with trade barriers when asked about EU's
opinion on GE crops. Please refer to
[CH8063](http://www.fas.usda.gov/gainfiles/200808/146295570.pdf) for
more information on China's biotechnology updates.

In the decade since China first allowed the commercial planting of four
GE crops since 1997, the government has moved cautiously, granting only
two further approvals for small-market species: poplar trees and papaya
in 2005 and 2006 respectively. Currently, just one GE
crop---insect-resistant cotton---is now planted widely. Although there
are no official statistics, some experts reported the development of
over 100 transgenic crops with about 60 already in field trials,
including rice, corn, wheat, soybeans, and peanuts. Although BT cotton
has been widely planted, China has yet to approve any major food crop
for environmental release. MOA is drafting 51 transgenic crop testing
and safety evaluation standards in anticipation of increased transgenic
crop development. MOA also requires authorized domestic institutions to
conduct environmental safety (field trials) and food safety (animal
feeding) tests to verify data provided by the seed developer.

GE crops and seeds need to be approved by the National Biosafety
Committee (NBC) after environmental and food safety evaluations by MOA
and government affiliated institutes. Once granted MOA safety approval,
GE seeds must then undergo examination for distinctness, uniformity, and
stability (DUS) by PVP examiners. China's PVP office drafted new DUS
testing guidelines for corn and rice, thereby lending speculation that
if GE corn and rice events receive safety approval, the process for PVP
testing for those seeds can move forward quickly and transparently.

The approval process so far has proved cumbersome and lacking
transparency. China's biotechnology regulations require foreign
introduced GE events to first receive approval abroad and then undergo
subsequent evaluation in China. This is a painstaking process not only
for commercial shipments containing GE commodities, but also for the
adoption of future GE seeds in countries that export to China. The
barriers include requirements 1) that product must be fully approved in
the originating country before the application can be submitted for
approval in China; 2) unprecedented testing for products already
approved in other countries, a requirement that foreign seed developers
provide viable seeds for developing detection methods; 3) the lack of
specific regulatory guidelines to approve stacked events; 4) and holding
only two periods per year for acceptance of applications.

Many scientists and economists recognize the potential benefits of
commercializing GE planting seeds. Analysts point out that not only will
state-sponsored research institutes benefit from licensing technology to
seed companies, but farmers would also benefit from lower direct and
indirect costs, increased yields, and lower pesticide applications.
Official studies demonstrate both the economy and the environmental
benefits, including the elimination of hundreds of accidental pesticide
poisonings.

# Trade Tables

## Table 1 China\'s Imports from the World in Volume & Value

## 

  ---------- ---------------- ------------- ------------- ------------- ------------- ------------- -------------
             MY(Jul-Jun)      **Volume                                  **Value                     
                              (KG)**                                    (US\$)**                    

  **HS       Planting Seeds   **MY05/06**   **MY06/07**   **MY07/08**   **MY05/06**   **MY06/07**   **MY07/08**
  Code**                                                                                            

             **Total**        24,587,807     26,614,093    27,126,615   106,100,000   122,381,000   135,984,000

  10019010   Wheat            0             0             0             0             0             0

  10020010   Rye              0             0             0             0             0             0

  10030010   Barley           0             0             0             0             0             0

  10040010   Oats             0             0             0             0             0             0

  100510     Corn             71,910        97,732        102,840       1,099,000     1,758,000     1,963,000

  10061011   Rice,long grain  0             0             999,012       0             0             316,000

  10061019   Rice, other      2,000         200           93            68,000        3000          1000

  10070010   Sorghum          363           2,487         20,355        3,000         4000          35,000

  10089010   Other cereals    0             0             0             0             0             0

  12010010   Soybean seeds    1,047         135           157           8,000         1000          1000

  12021010   Peanuts          0             0             0             0             0             0

  12051010   Rape/Colza,low   0             0             0             0             0             0
             erucic acid                                                                            

  12059010   Rape/Colza,nes   0             0             0             0             0             0

  12060010   Sunflower        1,592,845     1,669,078     1,183,593     13,718,000    16,181,000    12,092,000

  12072010   Cotton           1,530         9,280         525,102       7,000         23,000        112,000

  12091000   Other sugar beet 1,003         235           7,193         4,000         4,000         101,000

  120921     Alfalfa          129,506       65,005        38,530        418,000       258,000       166,000

  120922     Clover           2,147,802     1,009,733     1,485,703     7,605,000     2,690,000     5,534,000

  120923     Fescue           5,416,877     6,437,681     5,158,273     6,919,000     11,876,000    10,127,000

  120924     Kentucky         2,026,502     3,427,141     2,379,097     5,211,000     8,256,000     7,193,000

  120925     Rye grass        2,670,556     4,440,496     5,722,787     3,059,000     5,040,000     7,241,000

  120930     Herbaceous       171,938       67,720        29,669        4,400,000     4,303,000     5,639,000

  120926     Timothy          0             4,000         0             0             4,000         0

  12092990   Other Forage     2,338,199     1,756,577     903,856       4,551,000     4,424,000     4,018,000

  12092910   Sugar beet       341,250       894,949       1,256,166     3,026,000     8,483,000     10,820,000

  120999     Fruit, Melon and 1,174,728     1,229,736     1,103,197     6,193,000     6,249,000     6,741,000
             Other                                                                                  

  120991     Vegetable        6,499,751     5,501,908     6,210,992     49,811,000    52,824,000    63,884,000
  ---------- ---------------- ------------- ------------- ------------- ------------- ------------- -------------

Source: World Trade Atlas

## Table 2 China\'s Imports from the U.S. in Volume & Value 

  ---------- --------------------- ------------- ------------- ------------- ------------- ------------- -------------
                                   **Volume                                  **Value                     
                                   (KG)**                                    (US\$)**                    

  **HS       **Planting            **MY05/06**   **MY06/07**   **MY07/08**   **MY05/06**   **MY06/07**   **MY07/08**
  Code**     Seeds/MY(Jul-Jun)**                                                                         

             **Total**             11,542,168    14,416,567    13,166,705    35,857,000    50,653,000    48,056,000

  10019010   Wheat                 0             0             0             0             0             0

  10020010   Rye                   0             0             0             0             0             0

  10030010   Barley                0             0             0             0             0             0

  10040010   Oats                  0             0             0             0             0             0

  100510     Corn                  0             20            17            0             0             0

  10061011   Rice, long grain      0             0             0             0             0             0

  10061019   Rice, other           0             0             0             0             0             0

  10070010   Soghum                0             0             0             0             0             0

  10089010   Other cereals         0             0             0             0             0             0

  12010010   Soybean               0             0             0             0             0             0

  12021010   Peanut                0             0             0             0             0             0

  12051010   Rape/Colza,low erucic 0             0             0             0             0             0
             acid                                                                                        

  12059010   Rape/Colza, nes       0             0             0             0             0             0

  12060010   Sunflower             1,238,036     1,344,049     723,085       9,637,000     13,762,000    7,706,000

  12072010   Cotton                0             0             0             0             0             0

  12091000   Other sugar beet      0             205           0             0             3,000         0

  120921     Alfalfa               15,000        5,000         2,530         84,000        23,000        15,000

  120922     Clover                24,947        19,958        130,159       80,000        79,000        551,000

  120923     Fescue                4,722,736     5,525,689     4,490,889     6,071,000     10,336,000    8,921,000

  120924     Kentukey              1,804,908     2,791,115     2,164,347     4,777,000     7,137,000     6,696,000

  120925     Rye grass             2,006,901     2,386,029     3,865,600     2,258,000     2,486,000     4,520,000

  120930     Herbaceous            7,087         2,413         2,281         2,409,000     2,610,000     3,200,000

  120926     Timothy               0             0             0             0             0             0

  12092910   Sugar beet            0             200           0             0             20,000        0

  12092990   Other forage          615,267       1,405,873     790,203       2,680,000     3,994,000     3,629,000

  120999     Fruit, Melon & Other  627,722       484,585       610,433       2,994,000     2,676,000     3,187,000

  120991     Vegetable             479,564       451,431       387,161       4,867,000     7,527,000     9,631,000
  ---------- --------------------- ------------- ------------- ------------- ------------- ------------- -------------

Source: World Trade Atlas

## Table 3 China's Major Seed Imports and Major Countries of Origins

  ------------------- --------------- -------------- ------------- -------------
  **Clover Imports                                                 
  Volume and Major                                                 
  Origins (in KG)                                                  
  120922**                                                         

  **Country**         **MY04/05**     **MY05/06**    **MY06/07**   **MY07/08**

  Australia           806984          1535800        377,400       601,411

  Argentina           64,500          107,500        193,500       376,580

  Denmark             76000           122,250        98,875        176,900

  Canada              311650          148000         320,000       137,800

  United States       10000           24947          19,958        130,159

  New Zealand         0               209259         0             62,853

  Others              0               43             0             0

  **Total**           1269134         2147802        1,009,733     1,485,703

                                                                   

  **Fescue Seeds                                                   
  Imports Volume and                                               
  Major Origins (in                                                
  KG)**                                                            

  **Country**         **MY04/05**     **MY05/06**    **MY06/07**   **MY07/08**

  United States       5,424,585       4,722,736      5,525,689     4,490,889

  Canada              138,525         267,964        200,826       511,982

  Denmark             58,830          426,111        677,165       144,945

  Netherlands         0               0              34,001        10,457

  **Others**          0               66             0             0

  **Total**           5,621,940       5,416,877      6,437,681     5,158,273

                                                                   

  **Kentucky Seeds                                                 
  Import Volume and                                                
  Major Origins (in                                                
  KG)**                                                            

  **Country**         **MY04/05**     **MY05/06**    **MY06/07**   **MY07/08**

  United States       1,615,980       1,804,908      2,791,115     2,164,347

  Denmark             123,100         201,575        635,550       214,750

  **Total**           1,739,080       2,026,502      3,427,141     2,379,097

                                                                   

  **Rye Grass Imports                                              
  Volume and Major                                                 
  Origins (in KG)**                                                

  **Country**         **MY04/05**     **MY05/06**    **MY06/07**   **MY07/08**

  United States       2,518,558       2,006,901      2,386,029     3,865,600

  Canada              0               175,946        1,256,563     1,224,137

  Denmark             158,000         264,725        643,828       548,125

  Netherlands         60,000          75,975         134,051       39,925

  **New Zealand**     47,600          50,000         0             23,000

  Germany             0               22,009         20,000        22,000

  **Others**          0               75,000         25            0

  **Total**           2,784,158       2,670,556      4,440,496     5,722,787

                                                                   

  **Herbaceous                                                     
  Imports Volume and                                               
  Major Origins (in                                                
  KG)**                                                            

  **Country**         **MY04/05**     **MY05/06**    **MY06/07**   **MY07/08**

  United States       46,924          7,087          2,413         2,281

  Netherlands         3,041           12,996         63,498        21,888

  United Kingdom      18,166          99,395         100           156

  Australia           21,508          0              0             55

  New Zealand         120,287         6,799          0             543

  Others              15,454          45,661         1709          4746

  **Total**           225,380         171,938        67,720        29,669
  ------------------- --------------- -------------- ------------- -------------

**Table 3 (Continued)**

  ---------------- ------------- -------------- -------------- -------------
  **Other Forage                                               
  Imports Volume                                               
  and Major                                                    
  Origins (in                                                  
  KG)**                                                        

  **Country**      **MY04/05**   **MY05/06**    **MY06/07**    **MY07/08**

  **United         568,107       615,267        1,405,873      790,203
  States**                                                     

  Canada           44,100        1,305,531      79,539         48,453

  Denmark          61,985        125,894        30,000         65,000

  Others           198,387       291,507        241,165        200

  **Total**        872,579       2,338,199      1,756,577      903,856

                                                               

  **Sunflower                                                  
  Planting Seed                                                
  Imports Volume                                               
  and Major                                                    
  Origins (in                                                  
  KG)**                                                        

  **Country**      **MY04/05**   **MY05/06**    **MY06/07**    **MY07/08**

  **United         618,820       1,238,036      1,344,049      723,085
  States**                                                     

  Chile            52            37,458         92,213         287,223

  Australia        184,893       140,387        83,605         83,265

  India            40,018        64,202         94,732         78,397

  Argentina        3,230         13,613         33,178         9,711

  France           20,690        1,100          20,938         1,086

  Others           42,961        98,049         363            826

  **Total**        910,664       1,592,845      1,669,078      1,183,593

                                                               

  **Fruit, Melon                                               
  and Other Import                                             
  Volume and Major                                             
  Origins (in                                                  
  KG)**                                                        

  **Country**      **MY04/05**   **MY05/06**    **MY06/07**    **MY07/08**

  United States    138,731       627,722        484,585        610,433

  Japan            4,160         11,045         174,086        126,905

  Taiwan           420,322       220,277        145,763        78,714

  Thailand         205,368       78,463         51,729         37,406

  Australia        54,154        68,151         147,230        34,104

  Honduras         0             3,400          14,626         32,276

  Denmark          0             0              32,960         32,000

  Others           122039        165670         178,757        61,359

  **Total**        944,774       1,174,728      1,229,736      1,013,197

                                                               

  **Vegetable                                                  
  Import Volume                                                
  and Major                                                    
  Origins (in                                                  
  KG)**                                                        

  **Country**      **MY04/05**   **MY05/06**    **MY06/07**    **MY07/08**

  Thailand         2,216,903     2,399,937      1,638,425      2,842,932

  Denmark          359,204       421,522        718,067        1,104,255

  Japan            757,396       791,999        923,490        488,696

  Australia        797,161       783,013        660,814        415,942

  United States    341,609       479,564        451,431        387,161

  Italy            8,820         71,744         110,855        240,494

  Vietnam          314,005       184,101        287,551        204,441

  New Zealand      115,957       256,979        128,701        169,507

  Indonesia        556,424       404,223        284,793        103,476

  Others           275,179       706,669        297,781        254,088

  **Total**        5742658       6499751        5501908        6210992
  ---------------- ------------- -------------- -------------- -------------

Source: World Trade Atlas

## Table 4 China\'s Exports to the World in Volume & Value

  ---------- ----------------- ---------------- ------------- ------------- ----------------- ------------- -------------
             **MY(Jul-Jun)**   **Volume(KG)**                               **Value(US\$)**                 

  **HS       **Planting        **MY05/06**      **MY06/07**   **MY07/08**   **MY05/06**       **MY06/07**   **MY07/08**
  Code**     Seeds**                                                                                        

             **Total**         30,548,936       33,258,097    42,623,347    75,131,000        88,260,000    113,497,000

  10019010   Wheat             84               0             0             0                 0             0

  10020010   Rye               1,200            0             0             1,000             0             0

  10030010   Barley            29,214           0             0             12,000            0             0

  10040010   Oats              0                0             0             0                 0             0

  100510     Corn Seed         128,434          108,758       250,200       146,000           185,000       324,000

  10061011   Rice Long Grain   11,200,613       14,846,429    19,781,090    10,690,000        15,676,000    26,466,000

  10061019   Rice Other        1,835,045        1,872,141     4,482,999     2,462,000         3,329,000     6,640,000

  10070010   Sorghum           6,580            15,410        39,860        10,000            22,000        73,000

  10089010   Other Cereals     1,990            2,674         0             1,000             1,000         0

  12010010   Soybeans          240,492          316,791       78,155        119,000           120,000       64,000

  12021010   Peanuts           0                256,550       6,000         0                 161,000       4,000

  12051010   Rape/Colza, low   1,740            7,128         10,000        3,000             10,000        54,000
             erucic acid                                                                                    

  12059010   Rape/Colza,nes    15,001           7,823         2,780         2,000             18,000        3,000

  12060010   Sunflower         102,055          84,749        276,511       236,000           77,000        112,000
             Planting                                                                                       

  12072010   Cotton Planting   224,181          484,592       149,142       897,000           1,637,000     817,000

  12092910   Other Sugar Beet  0                440           78            0                 2,000         0

  120921     Alfalfa           3,864,435        4,650,825     3,853,594     4,326,000         6,724,000     7,148,000

  120922     Clover            0                2,120         210           0                 7,000         1,000

  120923     Fescue            103,073          0             0             133,000           0             0

  120925     Rye Grass         0                415           873           0                 2,000         2,000

  120930     Herbaceous        819,203          745,651       584,468       5,619,000         5,641,000     7,323,000

  120926     Timothy           8,000            0             0             13,000            0             0

  12091000   Sugar Beet        24,054           631           35            74,000            3,000         4,000

  12092990   Other Forage      4,363,414        4,379,067     5,960,250     5,618,000         5,299,000     7,634,000

  120999     Fruit, Melon and  1,030,052        975,105       2,825,760     6,989,000         9,209,000     11,418,000
             Other                                                                                          

  120991     Vegetable         6,550,076        4,500,798     4,321,342     37,780,000        40,137,000    45,410,000
  ---------- ----------------- ---------------- ------------- ------------- ----------------- ------------- -------------

Source: World Trade Atlas

## Table 5 China\'s Exports to the U.S. in Volume and Value

  ---------- ----------------- ------------- ------------- ------------- ------------- ------------- -------------
             **MY(Jul-Jun)**   **Volume                                  **Value                     
                               (KG)**                                    (US\$)**                    

  **HS       **Planting        **MY05/06**   **MY06/07**   **MY07/08**   **MY05/06**   **MY06/07**   **MY07/08**
  Code**     Seeds**                                                                                 

             **Total**         1,140,797     1,448,723     761,918       13,501,000    14,470,000    13,608,000

  10019010   Wheat             0             0             0             0             0             0

  10020010   Rye               0             0             0             0             0             0

  10030010   Barley            0             0             0             0             0             0

  10040010   Oats              0             0             0             0             0             0

  100510     Corn              0             0             0             0             0             0

  10061011   Rice Long Grain   0             0             0             0             0             0

  10061019   Rice Other        0             0             0             0             0             0

  10070010   Sorghum           0             0             0             0             0             0

  10089010   Other Cereals     0             0             0             0             0             0

  12010010   Soybeans          0             0             0             0             0             0

  12021010   Peanuts           0             0             0             0             0             0

  12051010   Rape/Colza, low   0             0             0             0             0             0
             erucic acid                                                                             

  12059010   Rape/Colza,nes    0             0             0             0             0             0

  12060010   Sunflower         0             1,983         0             0             1,000         0

  12072010   Cotton            96,102        15,655        16,000        384,000       39,000        64,000

  12092910   Other Sugar Beet  0             0             15            0             0             0

  120921     Alfalfa           93,500        118,150       13,994        35,000        288,000       41,000

  120922     Clover            0             0             0             0             0             0

  120923     Fescue            40,052        0             0             51,000        0             0

  120925     Rye Grass         0             0             105           0             0             1,000

  120930     Herbaceous        227,882       336,285       52,078        423,000       658,000       706,000

  120930     Timothy           0             0             0             0             0             0

  12091000   Sugar Beet        0             0             0             0             0             0

  12092990   Other Forage      113,226       23,857        0             209,000       47,000        0

  120999     Fruit, Melon and  36,866        35,622        224,334       762,000       1,052,000     1,539,000
             Other                                                                                   

  120991     Vegetable Seeds   533,169       917,171       455,392       11,637,000    12,385,000    11,257,000
  ---------- ----------------- ------------- ------------- ------------- ------------- ------------- -------------

Source: World Trade Atlas

## Table 6 China's Major Seed Exports and Major Countries of Origins

  ------------------- ----------------- ----------------- ----------------
  **Other Forage                                          
  Exports Volume and                                      
  Major Destinations                                      
  (in KG)**                                               

  **Country**         **MY05/06**       **MY06/07**       **MY07/08**

  Korea, South        3,672,889         3,703,611         4,285,072

  Italy               4,324             63,000            857,000

  Japan               405,535           286,919           415,378

  Taiwan              108,440           108,930           260,500

  Germany             0                 141,720           78,050

  Canada              40,000            0                 43,000

  Netherlands         19,000            9,450             20,000

  Korea, North        0                 0                 1,250

  United States       113,226           23,857            0

  Others              0                 41,850            0

  Total               4,363,414         4,379,067         5,960,250

                                                          

  **Rice, Long Grain                                      
  Exports Volume and                                      
  Major Destinations                                      
  (in KG)**                                               

  **Country**         **MY05/06**       **MY06/07**       **MY07/08**

  Vietnam             9,608,941         10,571,987        11,606,505

  Bangladesh          1,131,077         3,237,582         3,444,931

  Indonesia           0                 126,000           2,700,000

  Pakistan            350,519           909,218           1,539,014

  Philippines         2,076             1,300             454,000

  Others              108,000           342               36,640

  Total               11,200,613        14,846,429        19,781,090

                                                          

  **Vegetable Seed                                        
  Exports in Volume                                       
  and Major                                               
  Destinations (in                                        
  KG)**                                                   

  **Country**         **MY05/06**       **MY06/07**       **MY07/08**

  Netherlands         877,847           1,040,098         450,239

  Korea, South        1,267,537         1,935,511         1,493,564

  United States       319,419           533,169           917,171

  Japan               311,622           280,378           383,863

  Italy               309,584           614,287           111,131

  Taiwan              232,857           276,865           263,851

  Thailand            218,683           294,524           137,283

  France              386,791           435,638           183,482

  Vietnam             136,518           146,328           86,087

  Germany             106,421           131,211           13,764

  Malaysia            106,431           146,050           115,341

  Spain               68,192            274,484           71,873

  Others              260,171           441,533           273,149

  Total               4,602,073         6,550,076         4,500,798
  ------------------- ----------------- ----------------- ----------------

Source: World Trade Atlas

**Table 6 (continued)**

  ---------------------------- -------------- -------------- --------------
  **Fruit, Melon & Other                                     
  Exports in Volume and Major                                
  Destinations (in KG)**                                     

  **Country**                  **MY05/06**    **MY06/07**    **MY07/08**

  Korea, South                 583,300        536,371        375,292

  Japan                        340,418        228,083        294,259

  Indonesia                    832            758            21,600

  United States                35,945         36,866         35,622

  Laos                         0              5              1,000

  Malaysia                     5,881          50,608         4,822

  Singapore                    3,171          3,753          2,525

  Netherlands                  19,626         30,320         45,251

  France                       8,309          37,858         45,140

  Pakistan                     10,734         12,506         32,135

  Others                       139,698        92,924         117,459

  Total                        1,147,914      1,030,052      975,105
  ---------------------------- -------------- -------------- --------------

Source: World Trade Atlas

[^1]: This is allowed under China's WTO accession agreement.