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submitted 8 months ago by yogthos@lemmy.ml to c/news@hexbear.net
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[-] Kaplya@hexbear.net 48 points 8 months ago* (last edited 8 months ago)

To be fair, agriculture in China is a lot more challenging than say, the US and Russia because of their mountainous terrains that made automation difficult. To sustain a 1.4bn population, importing food is almost inevitable.

However, that doesn’t excuse the fact that in the 1990s and especially since joining the WTO in 2001, China has allowed foreign ag giants to enter and flooded the agricultural sector with patented GMO seeds that destroyed the domestic competitors (for example, Monsanto’s Roundup Ready line that entered Brazil and Argentina in 1996, and then into China in the late 1990s). The soybean crisis was one of the greatest humiliation that China suffered in the hands of American imperialism in the 2000s, and it played a major role in robbing China of their own food security for the past two decades.

[-] Bartsbigbugbag@lemmy.ml 19 points 8 months ago

Do you have any recommendations on literature about the Soybean Crisis?

[-] Kaplya@hexbear.net 35 points 8 months ago* (last edited 8 months ago)

I am not aware of any literature in English. I have been piecing together information from articles in Chinese to write a story about it, but haven’t finished yet.

The quick rundown is this:

In the summer of 1974, a 12-member team of plant scientists from USDA visited China on an expeditionary field trip to study the rural development program in China and as an exchange program with Chinese agricultural scientists. This was a trip of goodwill gesture that took place merely 2 years after the historic Nixon-Mao meeting to normalize the relations between both countries.

Among the team was Richard L Bernard, a soybean breeder from the US Regional Soybean Laboratory in Urbana, IL., who had traveled across several provinces to study and collect wild soybean plants, first in Jilin, then Shenyang, then Nanjing and Shanghai. This detail will become important later on.

The American scientists left China spending a month there, and compiled their findings into a report titled The Rural Development System of the People’s Republic of China: Impressions and Questions. (Note: evidence of Bernard’s participation in the report).

Nothing seemed unusual, both sides bid their farewells and went their own ways. It is now widely believed that this innocuous trip laid the foundation for the weaponization of food imperialism against China decades later.

Time jump 20 years to 1995. Monsanto launched the world’s first commercial GMO soybean product: the Roundup Ready soybean line that conferred superior yield, growth and extreme resistance to pesticides. The seeds would make their ways into Brazil and Argentina in 1996, then in the late 1990s, Monsanto would distribute the seeds for free to Chinese farmers amidst economic stagnation (the PRC was undergoing its first economic crisis in 1995-96 at the time), who were desperate to make up their losses.

The uneducated Chinese farmers ceded away their legal rights when they were coaxed into signing Monsanto’s Roundup Ready Technology Agreement, among which included that the farmer must pay ”120 times the technology fee plus the legal fees if s/he is caught violating the agreement.” (GRAIN)

Unaware of the implications, and as the GMO seeds would soon dominate the world’s soybean production, reaching a global average of 80% being GMO soybean, China increasingly relied on importing foreign GMO soybean seeds and especially after joining the WTO in 2001, the relaxation of trade regulations further exacerbated the reliance on foreign seeds.

In 1999, Monsanto would file a patent in 81 countries claiming intellectual property rights on soybeans with an enhanced yield (WO0018963). This patent would give Monsanto the “monopoly rights on Glycine soja (wild soybean), in particular the PI407305 strain from southern China and all its progeny. Further, the patent extends to any soybean carrying the yield genes.” (GRAIN) (i.e., any genetically modified progeny based on the parental Chinese soybean strain is now an intellectual property of Monsanto)

Then, in April 2000, the monopoly rights would be extended to 101 countries, including China.

What’s the problem here? Well, China did not even realize that Monsanto had filed a patent claiming copyrights on Chinese wild soybean strain, and was only made aware of the fact when contacted by a German Greenpeace activist.

Investigative work done by Chinese activists and law students would eventually uncover that the Monsanto’s soybean sample very likely came from the USDA repository, and the only information available about the sample was that it was collected near Shanghai. There was no official record of such exchange ever taking place, and it is widely believed that it came from among the samples smuggled by Bernard during his field trips to several Chinese provinces more than 20 years ago.

Now that China has lost its soybean rights to a multinational corporation, it’s time to destroy the Chinese agricultural sector once and for all.

In August 2003, bad weather and pests caused the soybean production in Midwestern America to fall, prompting the USDA to reduce its soybean inventory to a 20-year low. As soybean is a staple food product in China, many food processing companies panic bought the soybeans, causing the price to spike between August 2003 and April 2004, and the soybean futures under Chicago Board of Trade went from $540 in August 2003 to $1060 in April 2004, a 30-year high (the producer price in China spiked from 2300 yuan/ton to 4400 yuan/ton).

By April 2004, as the price reached its peak, USDA reversed its position and increased soybean inventory, and flooded the global commodity market with soybeans again and causing the price to plunge. As many of the Chinese food processing companies had purchased the higher priced soybeans months before, the sudden plunge in soybean price resulted in a huge loss for those companies. 70% of them went insolvent.

Agricultural giants ADM, Bunge, Cargill and Louis Dreyfus finally took the opportunity and bought nearly 80% of China’s food processing industries that were going under. The rest is history. The foreign corporations have gained near total control of China’s agricultural sector.

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