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| | Annex 3: Agricultural Policy and Food Security in China |
 | | Food supply availability in China is important not only because it concerns a large proportion of the world's population and consumption, but also because rapid industrialization has led to competition for resources between agricultural and non-agricultural sectors, strong income growth, rapid urbanization, and population growth. |
 | | This paper evaluates China's food security situation, reviews the performance of the food and agricultural sector, considers the role of food policies, particularly the most recent price and marketing reform policies, in improving the food situation, and identifies key issues related to food security which require further intervention. |
 | | Among various components of the public agricultural expenditure, the decline in the share of local government was highest in the agricultural capital construction investment (i.e., irrigation), which fell from 63 percent in 1978 to 47 percent in 1985 (Huang and David, 1995). |
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