An Empirical Study On The Comparative Advantage And Policy Support Level Of China's Oil Crops Since China's WTO Accession

China's oil crops market was opened to the world with a notable openness extent, before the WTO accession. And after the WTO accession, China' oil crops market experienced a great changes. It is considered as one of the agricultural product markets which suffered most tremendous WTO accession impact. In 2007, China's soybean imports increased to a record of 30.82 million tons, nearly 80% of soybean supply was dependent on foreign oil crops market, and the foreign edible oil dependency degree reached 59%, which is above the security line. Meanwhile, after entering the WTO, the rise in the RMB and labor cost became an inevitable trend. There is no doubt that it will be another big sock on China's oil crops market. Therefore, it is urgent to recover and develop the oil crop production and trade in domestic to enhance the self-sufficient of oil crops.Based on the comparative advantage theory and viewing from optimizing resource allocation, this paper, choosing the Chinese staple oil crops:soybean, rapeseed and peanut as analysis objects, using the policy analysis matrix as empirical method, tries to reveal the relationship between the comparative advantage and agricultural support policy, and estimate the dynamic matching level. In addition, considering the RMB and labor cost factors, this paper use sensitivity analysis to estimate how these two factors would affected the oil crops. The empirical study showed that:China's oil crops remained keeping the comparative advantage in the domestic market, while the oil crops industry enjoined little policy support, and the dynamic matching level was low, furthermore, the comparative advantage of oil crops is sensitive to the exchange rate.At last, on the basis of the theory and empirical research, this paper recommends some relative policy propositions. As China's oil crops remained keeping the comparative advantage, it is reasonable to maintain the oil crops self-sufficient target. Then it is necessary to stress the policy support under the WTO rules, to establish and improve the policy support system, learning from the international experience. At last but not at least, to slow down the pace of RMB appreciation, then reduce the pressure on oil crops development.