The Opening Of Australian Grain Market And China's Food Security

With the opening of Australian grain market, espesically after AWB export monopolization was cancelled, the evolution way of the world wheat trade pattern as well as the possible influence to Chinese food security have been analyzed in the research. The result shows that, a oligarch pattern will be formed in the world wheat trade, which will improve the import cost used by China to stabilize domestic grain supplies, and also China will face a bigger risk and more serious consequence of grain embargoes. Therefore the cost of Chinese food security will be improved by the increasing latent threat.The meaning of food security has been defined in the second part, on this basis the situation of Chinese food security has been commented by the domestic grain supply and demand condition and trade. As thing be, some latent hidden troubles still exist which caused by resources restraint and consumption growth.The signification of wheat importation has been analyzed in the third part. As the major variety, the wheat trade accounts for 57.56% in the world grain trade. And in China, the wheat importation is also the most important which accounts for more than 80% of the importation of all the grain. Thus, wheat importation has the important strategic signification.For a long time, a policy had been taken by Australian Government to keep interferring and controlling the wheat sales, and then the restrictions had been relaxed gradually, until Australian domestic wheat trade was completely opend in 1989, which would not be monopoly managed by AWB any more. However monopoly still exist in the wheat exportation. In 1999, AWB reformed from a semi-official organization to a company. In 2006, because of the scandal event of AWB, its exportation right was cancelled, that was not caused by the pressure from US on the surface, but the combined result acted by the domestic and foreign interest groups from the deep rooted political and economic factors.A big pressure to Canadian wheat exportation pattern has been broughted by the opening of Australian grain marke. The monopoly pattern will certainly be broken in the near future. Therefore, the world wheat trade pattern will change, that the wheat exportation in both countries would be controlled by American corporations, which will cause the oligarch. Through the analysis of latent threat by using the oligarch theory and the game theory, we can see that Chinese food security will be greatly affected by the change of world wheat trade pattern.Finally, the strategic choice and some countermeasures to safeguard Chinese food security in the new wheat trade pattern have been put forward, which are the restruction of overseas grain strategy and the establishment of Sino-Australia Free Trade Area.