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China was unable to feed its own population? As you can see, this situation can cause anxiety in the markets of raw materials, which are always very responsive to any changes in the Chinese software. Whatever it was, in contrast to the non-renewable natural resources of the world production of rice still has considerable growth potential. In addition, given the backlog and, therefore, potential growth in the Chinese incometaxindiaefiling gov rice sector is unlikely to be afraid of the physical inability of China to increase its production. In China, as in Japan and many other Asian countries, rice is one of the foundations of civilization and society. Japan protects its rice using 400% import duties, thus blocking the importation of foreign culture. If the WTO has set a minimum incometaxindiaefiling gov quota for its imports, it sends all abroad as international assistance. At the same time, the inner rice prices at least four times higher than on the world market. The difference in cost is offset by the state. Some time ago, the price of Chinese rice has become more than 50% higher than imports of Vietnamese culture. What is the reason? As in Japan, in China, rice prices are not market and established authorities. The fact that the price of rice has great social significance. With the huge growth of the Chinese economy over the past 20 years, incometaxindiaefiling gov inequality in living conditions in towns and villages is becoming deeper and sharper. Citizens were able to significantly improve their standard of living, while the incomes of farmers incometaxindiaefiling gov (they still account for just under half of the population) were in place. If during the time of Mao's China boasted an unprecedented equality of citizens, now bundle the population has become one of the strongest in the world. This is partly due to the low productivity of farmers, whose farms are small and belong mostly manual labor. The state did not want to correct the situation. In addition, the growth of urban farmers were evicted from the tiny benefit, because they do not own land. It also gives them a great dissatisfaction. For example, last year the entire village incometaxindiaefiling gov in the south of the country rose in open revolt against the local authorities. Thus, in terms of the coming social explosion could carry out risky or restructuring of agriculture, or to maintain the price of rice. It was eventually chosen the second solution. This has led to an increase incometaxindiaefiling gov in government purchases of rice, while importers incometaxindiaefiling gov rushed to buy much cheaper (50%), Vietnamese rice to then resell it for a good price in the domestic market. Unlike incometaxindiaefiling gov Japan, China's accession to the WTO had to make significant concessions in terms of customs duties. In particular this applies to agricultural products, tariffs which may not exceed 15% of the cost of the product itself. China has done in this area is nothing really new. Thailand, which until recently was the world's incometaxindiaefiling gov largest rice exporter in 2012 gave way to a place in India and Vietnam. But what is the reason? The Thai government faced a serious problem: even though the economic success of the country have put it among the leaders in Southeast Asia, they do not contribute incometaxindiaefiling gov to improving the lives of the peasantry, to which still accounts for a significant portion of the population. Social risks were very high, and the populist government decided to buy the rice harvest at inflated prices incometaxindiaefiling gov (again, with a 50% premium), even then he had to resell it at a loss to themselves. It is not hard to understand such a policy very quickly shows its negative sides to the state budget. Thus, the main problem, which raises these imports, concerns are not China's ability to provide for themselves with rice. Everything revolves around the income of farmers in those countries. incometaxindiaefiling gov Long-term solutions may become a rural exodus (the Chinese authorities fear that will not be able to keep under control the movement), the privatization of land by peasants and the expansion of the property, as well as the introduction of new, more efficient varieties. An example of them can serve as the EU Common Agricultural Policy, which will improve performance, reduce the number of farmers, thus improving their education and dohody.Mishel Tochen
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