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Contents
1. INTRODUCTION 1
2. BACKGROUND 1
2.1 ECONOMIC GLOBALISATION IS UNAVOIDABLE. 1
2.2 GLOBALISATION AND CHINA 1
2.3 THE SITUATION OF CHINA AGRICULTURE PRODUCTS EXPORTS AND
IMPORTS 2
3. BRIEF INTRODUCTION OF COFCO 2
4. MARKET OPPORTUNITY OF COFCO 2
4.1 TARIFF REDUCTIONS AND INCREASING QUOTA 2
4.2 LIBERALISING TRADE OF AGRICULTURE PRODUCTS. 3
4.3 PUSHING FORWARD THE AGRICULTURE FURTHER REFORM 3
4.3.1 The agriculture sector is further opening outward. 3
4.3.2 The agriculture structure adjustment is speeding up. 3
4.4 MAKING PROGRESS OF AGRICULTURE TECHNOLOGY 4
5. MARKET CHALLENGE OF COFCO 4
5.1 LOSING THE COMPARATIVE ADVANTAGE IN STAPLE AGRICULTURAL
PRODUCTS 4
5.2 THE SURPLUS OF AGRICULTURAL PRODUCTS 5
5.3 THE INTENSIVE COMPETITION 5
5.3.1 International competition 5
5.3.2 Domestic competition 6
6. CONCLUSIONS 6
7. RECOMMENDATIONS 6
8. REFERENCES 7
The Impact of Economic Globalisation on COFCO
1. Introduction
In November 2001, China became a formal member of the World Trade Organization
(WTO), which symbolised China*ƒ*…½*ƒ"€¡s involvement in economic globalisation.
Great opportunities and challenges would bring a big change in China. As a state
agriculture enterprise, Chinese Oils and Foodstuffs Corporation (COFCO) is undoubtedly
confronted with the impact of economic globalisation. The purpose of the report is to
discuss the opportunities and challenges of China national cereals and COFCO under the
impact of economic globalisation, and how to make a new development.
2. Background
Globalisation is an interaction and integration progress, which is among the people,
companies, and governments of different nations. It is driven by international trade and
investment and aided by information technology. Globalisation has impacted on the
environment, on culture, on political systems, on economic, and on societies around the
world (CSIS, 2006).
2.1 Economic globalisation is unavoidable.
Economic globalisation characterizes todays world economic environment. There are two
major factors. First, economic globalisation has been promoted by the need for worldwide
industrial restructuring. It has promoted the new emerging market economies highly and
has helped the process of industrial restructuring with their new productive capabilities,
especially in Asia. The second, the international capital generated from industrial
production and commercial circulation becomes available. In addition, economic
globalisation has been expediting by a different kind of capital which represented by
various investment funds has eagerly been invested into areas where it can generate the
most profit (Tong, 2006).
2.2 Globalisation and China
As one of the fastest growing economies, China has devoted herself into the economic
globalisation process. And economic globalisation has brought several opportunities to
China*ƒ*…½*ƒ"€¡s market. First, foreign capital inflow has helped relieve the bottleneck
caused by the lack of capital. Second, accessing foreign markets and aligning with
