In recent years, transnational seed companies have been aggressively expanding their presence in China, strategically targeting key regions such as Northeastern, Northwestern, and Eastern China. These global players are not only setting up operations but also planning long-term food distribution strategies. Major grain processing companies in provinces like Shandong, Henan, Hebei, Heilongjiang, and Hunan have all become part of this growing network. Once fully established, these companies could gain control over grain production at the source, subsequently influencing food production, storage, and processing across the country.
From vegetables and flowers to staple crops, the impact of foreign seeds is already significant. Currently, more than half of China’s high-end seed market is dominated by imported varieties. For example, over 90% of sugar beet seeds and nearly all sunflower seeds come from abroad. In Jilin, the U.S.-developed "Xianyu 335" corn seed holds over 80% of the local market share. This trend has led to a concerning situation where domestic seed varieties are struggling to compete, with many local companies being pushed out of the market.
"The domestic seed industry is suffering a major crisis," some experts have warned. With foreign seed companies entering the market, Chinese seed producers are under immense pressure. Many local varieties are being replaced by foreign ones, threatening the long-term sustainability of China's seed industry. Industry professionals are increasingly worried about the future of their sector.
Agriculture remains the foundation of China's economy, and the seed industry plays a crucial role in ensuring food security. Recently, reporters from *Legal Daily* spoke with several members of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) who emphasized that seed farming is a strategic industry essential for national stability and people’s livelihood. They stressed that seed security is directly linked to food security, and without it, sustainable agricultural development would be impossible.
Since the implementation of the Seed Law in 2000, China opened its vegetable and flower seed markets to foreign players. As a result, 76 foreign-owned agricultural seed companies now operate in the country. While they bring in profits, farmers are forced to pay higher prices for seeds. There is growing concern that if foreign capital gains control over staple crops like corn and rice, China's agricultural "neck" could be held by external forces, posing a serious threat to national food security.
One CPPCC member, Yao Liying, strongly advocated for a complete ban on the commercial approval of genetically modified staple foods. She pointed out that multinational corporations hold a technological advantage in genetic modification, while China's current capabilities lag far behind. Allowing GM crops into the market could lead to an overnight takeover by foreign firms, endangering China's seed sovereignty.
Yao Liying proposed a comprehensive plan to counter the expansion of transnational seed companies. In addition to banning GM staple food approvals, she called for improvements in seed protection mechanisms to prevent the loss of germplasm resources. She suggested prohibiting foreign entities from illegally collecting domestic genetic material and establishing molecular fingerprinting systems for key crop resources. Additionally, strict accountability measures should be enforced for scientists and researchers who collaborate with foreign companies to prevent the leakage of critical genetic materials.
Research from China Agricultural University in 2012 highlighted the challenges facing China’s seed industry. Compared to global giants, Chinese seed companies are small in scale, lack innovation, and have weak risk resistance. Out of nearly 9,000 domestic seed firms, only a few hundred have more than 30 million yuan in registered capital, and just 50 have R&D capabilities. In 2011, 14 listed seed companies generated over 100 million yuan in revenue, but the total industry income was less than one-sixth of that of a single foreign company.
To strengthen China’s seed industry and secure the “lifeline†of its grain supply, several measures have been proposed. Wu Huijin, another CPPCC member, outlined steps to improve management systems, enhance R&D capabilities, and build better platforms for seed technology innovation. He recommended creating a fairer legal and policy environment, promoting talent development, and prioritizing support for leading domestic enterprises.
Wu Jianjin, another committee member, emphasized the need to build strong, internationally competitive Chinese seed companies. Only through the creation of large-scale, innovative seed clusters can China develop its own “aircraft carriers†in the global seed industry, ensuring long-term growth and stability for the nation’s agriculture.
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