FINANCIAL ASPECTS OF CHINA'S AGRARIAN POLICY

Issue № 8, 2026, article № 3, pages 31-41

Section:

Language: Russian

Original language title: ФИНАНСОВЫЕ АСПЕКТЫ АГРАРНОЙ ПОЛИТИКИ КИТАЯ

Keywords: AGRICULTURAL POLICY, BRICS, GOVERNMENT SUPPORT, CHINA, LENDING, CREDIT INSTITUTIONS, FINANCING

Abstract: Agrarian reform in China required significant government financial outlays, as well as the attraction of private capital. This necessitated changes to the agricultural financing system to ensure agricultural development in line with changes in agricultural policy, aimed primarily at ensuring food security and increasing farm incomes. These changes primarily affected budget financing. Specifically, there was a gradual shift away from the previously used investment support model toward the active use of price regulation mechanisms and the encouragement of increased agricultural production. Currently, the bulk of state support for farms comes from market price support, which is achieved through both subsidies and various import policy measures. In 2024, this accounted for 73% of budgetary funds allocated to support agricultural production. The agricultural lending system has also undergone significant changes, primarily aimed at ensuring access to credit for agricultural producers and small rural businesses. Along with budget financing, farmer lending through specialized banks, financial companies, and credit cooperatives has become more widespread. The integration of insurance and other non-financial institutions into the rural financial system has improved resource allocation and contributed to rural revitalization and agricultural modernization. Currently, the agricultural financing system combines state and market regulatory mechanisms. External financing is an important channel for financing agriculture and the development of China's agro-industrial complex. China makes extensive use of the financial resources of the BRICS New Development Bank, attracting financial resources primarily for the development of transportation systems and rural infrastructure. China's financial policy for developing its agricultural sector has enabled China to become a leader in the global food market.

Authors: Medvedeva Nina Afanasevna