China’s Ministry of Finance has announced that the country’s central government has earmarked 4.93 yuan (US$805.93 million) to fund 4,238 agricultural projects this year.
According to the ministry’s statement, leading players or particular products involving grains and oils, livestock breeding, and vegetable production will be giving priority access to the funds.
Overall the financing will be allocated to 4,238 agricultural projects, of which 1,445 will involve planting, 1,369 will involve breeding, and 914 will be in agricultural and food processing.
As of May, Chinese exports declined 2.8% year on year to 1.17 trillion yuan according to data from the General Administration of Customs, while total foreign trade fell by 9.7% year on year to 1.97 trillion yuan, indicating the ongoing downward pressure on the country’s economy. In addition, in the first three months of this year, China’s gross domestic product (GDP) grew by 7% – the worst quarterly showing in six year, and the country’s overall economy grew by 7.4% – the lowest growth rate in 24 years.
In response, the Chinese government is intensifying its investments in the hope of driving growth, with the State Council announcing last month through 12 documents various supports ventures ranging from manufacturing modernizations to asset acquisitions.
The Ministry of Finance also expects that this central agricultural fund will drive a further 2.58 billion yuan of investments from local governments and 10.39 billion yuan from bank loans and self-raised funds.
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