China has successfully fed 22 percent of the world population by its 7 percent of the world's arable land. Before 1978, low-priced cereals and potatoes were the staple food of the Chinese people, due to the low standard of living. Food supply has been targeted to meet the needs of this lower standard. Since China began economic reform in 1978, it has made great progress in gain production. From 1978 to 1995, the total grain output increased by 50 percent (Table 2.1). The grain production has meet the basic needs of the Chinese people. However, with rapid economic development, road and housing construction has taken over a large area of cultivated land, which resulted in a tenser situation regarding the scarce land resources. On the other hand, there is an increasing demand on feed grains due to the rising income of the Chinese people and the increased meat consumption in their diet pattern. The grain shortage resulted in grain import and the continuing growth of grain price, which inevitably caused a series of economic problems. The grain issue has a significant impact, not only on the immediate interests of the Chinese people, but also on the international grain market and price indicators. Therefore, it is not surprising to see that wide attention has been paid by both foreign and domestic experts and scholars to the grain issue in China. Herewith, I would like to give a brief analysis on the grain supply and demand prospects in China.

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