August 29, 2011

China to allow foreign stakes controls in seed firms

China could permit foreign seed firms to have controlling stake in the local seed enterprises, and the Ministry of Commerce (MOC) and the Ministry of Agriculture (MOA) are studying on the issue, according to a report on Friday (Aug 26).

However, listed seed companies consulted stated that they are not informed of the news yet. Peng Guangjian, secretary of the board of directors of Yuan Longping High-Tech Agriculture Co. noted that the possibility is slim because it deviates from the country's policy of encouraging development of domestic seed industry.

At present, China only allows foreign seed companies to hold a maximum of 49% stake of a Chinese seed company, but this has not stopped foreign companies from penetrating into China's seed market.