Development Of The International Agricultural Investment Rules And China’s Coping Strategies

The global investment boomed after the food crisis in 2008 and influenced the global food security and nutrition. The sudden rise of agriculture investment brings to complicate impacts in terms of economy, political and ethics to the food security, nutrition, poverty reduction and rural development. Under this circumstance, some of the international organizations actively appealed for the formulation of relevant rules to manage this kind of investment. Nowadays, China is experiencing the rapid develop of foreign investment. China’s agriculture foreign investment is facing unprecedented complex situation as well as precious opportunities while China barely understands the international investment norms and mechanisms which lead to the lack of Chinese authority in international investment rules formulation. Deep analysis of core values, legislative authority and technology system of the rules of agriculture foreign investment are of great help of maintenance of Development environment, and promote the development of agriculture foreign investment.Based on the above rationale, this paper focused on the evolution of international agriculture investment rules system and the coping strategies. With Foreign Direct Investment theory and National Interest theory, this paper adopted double gaming and Logistics models and analyzed from international politics, economics and internal laws aspectives. The international rules and its background were reviewed, and the trend of negotiation on agriculture investment was evaluated. Then this paper analyzed the current situation of China’s agriculture investment, including the overall situation, geographical flows, regional and industrial characteristics. Meanwhile, this paper analyzed the features and environment, problems, trends and willingness of China’s agriculture investment followed with analysis of China’s policies on rulemaking of agriculture foreign investment, including the impact on China’s agriculture, the general position and the process of rulemaking. Based on the analysis above, this paper studied the policies that can promote the agriculture investment, concluded the weak link of enterprises’ behavior of foreign investment, and analyzed the advantages and disadvantages of agriculture investment with the method of strategic analysis. Finally, this paper proposed the suggestions on China’s agriculture foreign investment. The analysis on the international agricultural investment regulation system, benefit gaming and China’s coping strategy reflected the transformation from problem focus to authority focus, developed the agricultural Out-going Strategy meanwhile provided good reference for the development of agricultural foreign direct investment theory.Main conclusions are as follows. Firstly, the international agricultural investment rules system and its evolution were analyzed. There are four levels of international agricultural investment system: the laws of each country, which are the basis of the international investment system; the treaties and agreements on the bilateral agricultural investment; the regional rules of international agricultural investment; and the multilateral rules of international agricultural investment. Driving forces of making the international agricultural investment rules include the emerging investment needs from of the developing countries and the new economical entities and significant concerns on the acute disputes about international agricultural investment. The trends of the agricultural investment development include comprehensiveness and legislation of agricultural investment rules; the continuously enhancing investment liberty. Secondly, negotiation and formulation of international agricultural investment regulation was analyzed through China-USA bilateral investment agreement negotiation and multilateral agricultural investment regulation negotiations. A process of planning, authorization, negotiation, approval and implementation would be followed with an aim of maximum of the national benefits. The double gaming with multi actors’ participation will be achieved through both competition and cooperation. So far, Chinese foreign investment of agricultural industries is exhibiting diversification, and the profit of agricultural investment gradually shows up. China needs to consider both in attracting foreign agricultural investment and protecting domestic agriculture development as well as agricultural institutions. Thirdly, features, willingness and trends of China’s agricultural investment were analyzed. China’s investment situation among different agricultural sectors and different major services varies significantly; in the meantime, the biased distribution of investment and the unbalanced development of different agricultural industries are also major problems which require the improvements in foreign agricultural investment and its profits. The challenges which Chinese agricultural international investment is facing are brought by the new international investment rules and environment, the local protectionism applied by the investment host country, and the lack of financing channels of Chinese agricultural enterprises. The effects of agricultural international investment on Chinese agriculture and economic development include both positive influence and potential risk. China should protect its national interests through gaming with other countries when anticipating the establishment of the international investment rules, and strive for more economic profits. The impact factors analysis shows that there’re stronger investment willingness in agricultural enterprises, non-state owned enterprises, and new enterprises. Factor of whether leading enterprises, registered categories, enterprise scale, whether oversea enterprises doesn’t impact the investment willingness significantly. Case studies also show that Chinese enterprises which can actively adapt to international regulations operate well in overseas while there’s large amount of enterprises which encounter in great dilemma. Fourthly, this paper analyzed goals and coping strategies for China’s participation in the formulation of international agricultural investment regulation. The basic strategy of using international rules to implement agricultural international investment is Weakness to Opportunity, which is based on reversing the inferior situation and taking the opportunity, then enhancing our advantages and controlling the risk. Foreign agricultural investment involves the participation of enterprise and government; therefore, to better improve China’s agricultural international investment, it is suggested to strengthen the capacity of enterprises as well as to improve supporting policies of the government.