In recent years, transnational seed companies have been actively expanding their influence across China, particularly from the northeast, northwest, and eastern regions. These multinational firms have developed strategic plans for food distribution, with many grain processing companies in provinces like Shandong, Henan, Hebei, Heilongjiang, and Hunan already in place. Once fully established, these companies could gain control over grain production at the source, potentially extending their influence to food production, storage, and processing.
Currently, a significant portion of China’s high-end seed market is dominated by imported seeds. For example, more than 90% of sugar beet seeds and sunflower seeds are sourced from abroad. In Jilin province, the U.S.-developed "Xianyu 335" corn seed holds over 80% of the market share. This trend extends to vegetables, flowers, and field crops, raising concerns about the long-term security of China's agricultural resources.
There are growing fears that domestic seed varieties are being gradually replaced by foreign alternatives, leading to a decline in the competitiveness of China's seed industry. Many local seed companies are struggling to compete with international giants, resulting in a loss of market share and independent genetic resources. Industry experts warn that this situation poses a serious threat to national food security and agricultural sustainability.
The Chinese government has recognized the importance of seed security, emphasizing its role in ensuring the stability of the national economy and people's livelihoods. As part of the ongoing efforts to strengthen the seed industry, several members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) have called for urgent action to protect domestic germplasm resources and prevent foreign control over critical crop seeds.
Since the enactment of the Seed Law in 2000, China has opened up its vegetable and flower seed markets to foreign investment. Over 70 foreign-owned agricultural seed companies are now registered in China, bringing both opportunities and challenges. While they contribute to the market, they also drive up seed prices, placing additional burdens on farmers. There is widespread concern that if foreign capital gains control over staple crops like corn and rice, it could threaten China's food sovereignty.
One CPPCC member, Yao Liying, has strongly advocated for a ban on the commercial approval of genetically modified staple foods. She argues that transnational corporations hold a technological advantage in genetic modification, while China lags behind in this area. Allowing GM crops into the market could lead to rapid market dominance by foreign companies, risking the loss of China's own agricultural independence.
To address these challenges, Yao Liying has proposed several measures, including improving seed management systems to prevent the loss of germplasm resources and establishing traceable records for key domestic crop varieties. She also emphasizes the need for strict accountability mechanisms to monitor the activities of scientists and researchers who collaborate with foreign entities.
According to a 2012 report by the China Agricultural University, China's seed industry faces significant challenges compared to global leaders. The sector consists of nearly 9,000 companies, but only a small fraction—fewer than 100—have registered capital exceeding 30 million yuan. Among them, just 50 have research and development capabilities. In 2011, 14 listed companies generated over 100 million yuan in seed sales, but the total industry revenue was less than one-sixth of that of a single foreign company.
To strengthen the national seed industry and secure the lifeline of China's grain supply, experts suggest reforming the management system, enhancing R&D capabilities, and creating a supportive policy environment. They also emphasize the need for better protection of new plant varieties, increased investment in research, and stronger risk management mechanisms.
As the debate continues, the focus remains on building a robust and competitive seed industry that can stand on its own and withstand external pressures. Only through sustained innovation, strong governance, and strategic planning can China ensure its agricultural future remains secure and self-reliant.
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