China to spend US$2.9 billion on GM crops in the next 15 years

The Chinese government is boosting its acceptance of GM technology as it struggles to maintain a balance between grain supply and demand at a time when increasing urbanisation is leading to an ever smaller supply of farmland in the world's most populous nation. 

The Chinese State Council recently approved a special science and technology fund with up to with a RMB 20-billion (US$ 2.9 billion) for research of new varieties of biotech crops from 2006-20.

The USDA's Foreign Agricultural Service noted that the move signals China's intent to use biotechnology as a key means to address food security.

This comes as GM seed maker Monsanto announced that China has approved imports of Roundup Ready 2 Yield soy, the second generation of the company's popular Roundup Ready series.

China is the largest purchaser of US soy, with purchases of more than US$4 billion worth of US soy, last year.

A change to permit the planting of biotech food crops could significantly alter Chinese production and rural economy in the coming years, the FAS said.

However, concerns still remain about transparency in China's biotechnology regulatory and approval system and its ability to evolve with this rapidly changing technology.