It is a cliché that China is the world's manufactured goods factory, but
most observers are just as certain that China's farmers are a serious
burden on growth. Yet China in fact has the makings of an
internationally competitive agricultural sector, with the market setting
most prices, farmers shifting quickly toward what they produce best, and
significant research and development focused on biotechnology and other
promising areas. China's trade interests are changing as its farmers
become more competitive, and this transformation will have major
implications for world trade talks and global economic welfare. This
study traces the steps China has taken to make agriculture a winning
sector, the evidence that its initiatives are working, and the course
the country is likely to take.