ABSTRACT
The foundation of the People's Republic of China in 1949 ended wars that were decades long. China's grain exports during the 1950s can be attributed to two key factors: increases in grain production; and the government's demand for foreign exchange. Soybeans and soymeal were included as grains, to be consistent with the Chinese definition. Since 1978, China's grain production has increased at a much faster rate than before, although the area devoted to grain has actually declined. The lower predictions by USDA and others are based on the fact that China's grain sown area has declined under the new policy and the growth rates of major modem inputs have slowed down at the same time. Self-sufficiency had been required everywhere regardless of economic efficiency and this was enforced by the assigning of sown area to grain crops by the government.
