| Soybeans as being one of the major field crop, not only is it an important grain crop, but it also has been transformed into a considerable industrial crop. Soybean oil is the most important vegetable oil in China and the world; mean while, soy meal is the main source of planta protein for Animal husbandry. Based on the supply and demand relation of international and China soybean market, through the analysis of international trade practices, price setting mechanism as well as China's soybean international trade interdependence, this paper suggests that China can solve the soybean industry dilemma by improving its soybean international trade pattern.Soybeans originated from China; China is also the world fourth largest soybean producer. However, because of the scarcity of arable land, soybean acreage did not change much for many years. Output increase was mainly driven by the slight yield increase. Total output was far less than the demand increase stimulated by the country's economic development and the comsumption increase of meat, eggs and milk in the daily diet of the increasing population. The difference between demand and supply forced China to import more and more GMO soybean from international market.Imported Soybeans have a great contribution to China's economic development and agricultural production. It had supplied enormous amount of vegetable oil to solve the county's cooking oil shortage; soy meal become the protein source of feed industry, which supported the countries livestock industry development, and further supplied enough protein to consumer's table. The emerging of the new soybean crushing industry increased the wealth of the community and provided more employment opportunities. Last, and the most important, it saved a capacious amount of exquisite arable land to ensure the production of other grain crops, such as corn. Therefore, Soybean import in China strategically has the same function of crud oil import.Increasing demand of soybean import from China stimulated global soybean production, especially the production of the countries in South America, such as Brazil and Argentina. Now days, global soybean production center is moving from North America to South America, while international trade pattern had also been changed. The US used to be the largest soybean exporter, but now Brazil and Argentina share most part of the export market. Huge arable land reserve in South America ensured the soybean acreage increase in these countries, and put a warrant on soybean import sources for China's increasing demand.However, soybean import had seriously affected China's soybean production, especially impacted soybean farmers' production and income. The reason is that both domestic soybeans and international soybeans go to the same crushing industry, and the price is determined by international market because of the huge import amount. Solving this problem needs to cut the price link between domestic produce and imported soybeans. Through this research, it appears that China's GMO Soybean Import Regulation has the potential to separate the two products into two isolated markets. If China lower or stop oil-soybean production and turning to produce only non-GMO food-soybean, the country can establish a new domestic non-GMO food-soybean market without price impact from international market volatility, hence the government soybean production policies may perform more efficiently.As soybean already become an industrial crop, rather than a grain crop, increasing soybean import may not harm the countries food security, but somehow benefit the grain self-sufficiency rate through more arable availability due to fewer soybeans planted. Therefore, China can keep increasing soybean import, fully use the current lie idle soybean crushing capacity, supply more vegetable oil to our cooking oil market, and export the surplus soy meal to international market, such as Japan.As there are many exporting and importing countries in the world, International soybean trade is not based on monopoly. There are certain patterns to the settings of international trading prices. Importing companies and crushing plants in China should actively get involved in the international soybean market and make contributions to the price setting process in different tracing patterns. Nobody can offer China a right to set the international soybean price, but the involvement of Chiese comopanies' market practice. Though China is the largest soybean importing country in the world, it is not the only soybean importer in the global market; China can not control the international market price through its buying power. World soybean price is the result of international soybean demand and supply balance.China can increase non-GMO food-soybean production, promote the useage of food-soybean in China and in the world, provide value-added soybeans by taking the advantage of the "brand name" as non-GMO production base. Then, Chia's international trade pattern will become more healthier by importing GMO soybean, exporting soybean meal and China produced non-GMO food-soybean, rather than the current pattern, which mostly import GMO soybean.This research is based on the living experiences and scientific investigations in major soybean producing countries, combined with years of teaching and research background in agronomy, as well as hand on practice of soybean international trade. Through the analysis of production, trade and price data by using model of mathematical economics of soybean international trade interdependence, the research resulted in changing of trade pattern to solve the current problems in soybean industry. The author suggested that the country should change the view of soybean in crop categories in agronomy and agricultural economic research, establish two soybean markets in China and decrease soybean production for crushing. This research brought fourth new viewpoints, research topics as well as research methods in this kind of studies, and its results provided theoretical and practical reference for policy makers in the country.
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