An Analysis Of The Impact Of FDI On China's Agricultural Industry Security

With China's reform and opening up,agriculture becomes one of the industries to which foreign direct investment come,and China is also one of the countries whose opening degree of agriculture and agricultural products are high in the world.But foreign direct investment is a double-edged sword for our agricultural field.On the one hand,it can make up the lack of domestic agriculture investment and science and technology gap,promote the development of trade and transfer agricultural development mode.On the other hand,it can also cause such risks as agricultural products' being controlled and losing market pricing rights and so on.With China's accession to the WTO and the degree of economic globalization continues to deepen,the penetration of foreign direct investment in our agricultural field continues to deepen and it sounds the alarm time and time again for our agricultural security.As a basis of national economy of a country,its industry security is the footstone of national economy security.So its importance is self-evident.At the same time,the Chinese government work report of 2016 made it clear that agriculture is also one of the important cooperative fields for both sides to promote Sino-US,Sino-EU trade and investment agreement negotiations.Under the situation,the research on the impact of foreign direct investment on China's agricultural industry security is of great importance to decrease risks and guarantee the security of agricultural industry in China.Based on the previous research,the paper breaks the situation which mainly dwells on qualitative research,uses qualitative and quantitative method to analyze the impact of foreign direct investment on China's agricultural industry security and make up the gap of the recent two years' relevant data.The qualitative part analyzes the influence mechanism of foreign direct investment on China's agricultural industry security,which includes capital crowding-out effect,technology control,trade dependence and resources environment damage.And the part approves the acting force of foreign direct investment on China's agricultural industry security.Then it demonstrates the current situation of our agriculture's using for foreign direct investment including the investigation for total amount situation,regional situation and source situation.It also summarizes three features in the process of using foreign direct investment: the proportion of agricultural use of foreign capital and scale is too small,agricultural useof foreign regional distribution is uneven and the introduction of foreign investment in agriculture is unreasonable.The quantitative part uses the representative evaluation index system of agricultural industry safety,builds multiple regression model and selects data of 2000-2014 to regress and calculate the impact of foreign direct investment on China's agricultural industry security from such four aspects as agricultural development,agricultural competitiveness,agricultural dependence,agricultural control.The empirical results show that: first,the increase of foreign direct investment will lead to the rise of agricultural security from the perspective of agricultural development;second,the increase of foreign direct investment will lead to the decline of agricultural security from the perspective of agricultural competitiveness;third,the increase of foreign direct investment will lead to the decline of agricultural security from the perspective of agricultural dependence;forth,the increase of foreign direct investment will lead to the decline of agricultural security from the perspective of agricultural control.Foreign direct investment benefits our agricultural economic development,but to a certain extent,it weakens the competitiveness of China's domestic agricultural enterprises.At the same time,the increase of foreign direct investment enlarges the degree of foreign dependence while decreases the control of national agriculture.In conclusion,based on the description of our agriculture's use for foreign direct investment and empirical analysis results,the paper thinks that our national agricultural industry security should be implemented form agricultural development,agricultural competitiveness,agricultural dependence,agricultural control.The rise of agricultural development can be achieved by improving food productivity,protecting cultivated land and increasing investment in agricultural education;the rise of agricultural competitiveness can be achieved by developing agricultural science and technology,improving the level of agricultural organizations and training leading enterprises;the control of agricultural dependence on foreign countries can be achieved by adjusting the agricultural structure,strengthening the monitoring of agricultural imports and paying attention to non-price competitiveness of agricultural products;the increase of agricultural control can be achieved by establishing agricultural safety warning mechanism and controlling foreign investment concentration.But at the same time,we also must realize that protecting agricultural industry security is not to refuse foreign investment extremely,but to using it properly and achieve healthy and orderly development of the agriculture.