The Comparative Analysis Of Agricultural Subsidy In China And Other Countries

China's entry into WTO will push Chinese agriculture to take part in globalcompetition. On one hand, this will provide Chinese agricultural development withmore opportunities, and on the other hand will confront it with more challenges andrisks. These difficulties not only come from the present agricultural developing leveland capacity, but also from the government arrangement of agricultural institutionsand implementation of policies. Efficient institution arrangement is the key toreducing cost of trade, and also an important factor for improving agriculturalproducts' international competitiveness. According to WTO rules and the currentsituation of agricultural subsidy in China and the other WTO members, Chinesegovernment should make full use of subsidy space, and restructure subsidy policies,which will be meaningful. The article addresses issue of Chinese agricultural subsidy.Firstly, it analyzes agricultural subsidy as a general rule by Game Theory andInstitutional Economics and New Theory of International Trade, which lay a theoreticfoundation for each country's evolution of agricultural subsidy; Secondly, it comparessubsidy policy' s background and the reason for changing at home and abroad, whichprove their differences in agricultural subsidy under different political and economicalbackground; Thirdly, it compares strength and the executive condition in agriculturalsubsidy inside and outside ,and finds out where the gap lies between them, anddiscusses Chinese subsidy space under WTO Agricultural Negotiation; At last, fromabove it chooses a new subsidy system - a direct subsidy system, which aims atincreasing farmers' income, keeping countryside' s stability, and ensuring food safetyand agricultural sustained development after china's access to WTO.