CPI(M) CC DELEGATION VISIT TO CHINA � II

Madan Ghosh

CHINA has attracted the attention of the world because of its consistently high economic growth rate and stunning improvements in infrastructure, science and technology and culture. Deeper insights into the developments in China can be developed by observing them from inside the country and interacting with senior officials and political leadership of the country. I share an immense curiosity about China�s development with many others in India. Being nominated as a part of a 5-member delegation of the CPI(M) central committee to China therefore came as an exciting opportunity.

The CPI(M) delegation visited China between December 1-8, 2008. During the weeklong visit, the delegation held discussions with senior national leaders, ministers, directors of various government departments and leaders of provincial governments. Among the aspects, which deeply impressed me, was the capacity of China to make advances in a globally competitive environment, the preservation of their heritage and dealing with natural disasters with competence and accountability. The sight of Mao resting in eternal sleep in his mausoleum and a visit to his birthplace were very moving experiences. The majestic Great Wall of China, conservation of the endangered Great and Red Pandas, the massive reconstruction of earthquake resistant structures � all these reminded me of the Communist ideal of knowing the past and moving towards the future. Certain questions have also crept into my mind. I have tried to summarise my thoughts on China in the following sections.

SOME FACTS  ABOUT CHINA

The total geographical area of China is 96 lakh square kilometers. In 2007, the population of China was 132.13 crore. There are 56 ethnic groups in China out of which the �Hans� constitute 92 per cent of the population. Those living in rural areas constitute 55.1 per cent of the population. In 2007, the total cultivable land in China was 12.38 crore hectares. Locally the unit of land area is �mu� which is 1/15^th of one hectare. China�s currency is known as Yuan. While China�s land area as well as population is more than that of India, its cultivable land is less than that of India and its per capita cultivable land is about 62 per cent of the per capita cultivable land in India.

As a result of the �one child� norm in China, the growth rate of population has decreased over the years. Birth rate and death rate per 1000 persons in China are 12.1 and 6.93 respectively. This means that the natural growth rate of population in China is around 0.6 per cent. The sex ratio at birth is 120.22 male children for every 100 female children.

AGRICULTURE  IN CHINA

Land Ownership: There is no private ownership of land in China. Land is State property. Agricultural and homestead lands are given to the families on lease basis. At present, the number of registered farmers in China is 95 crore, out of which 75 crore live in rural areas including rural areas adjacent to cities.

Land Use: Since the beginning of the reform processes initiated by Deng Xiaoping and more recently to maintain the high growth rate of the economy, China has laid special emphasis on industrial and infrastructure development. Pressure on land has naturally increased, along with recurrence of natural disasters in some part or the other of the vast country. Steps are also being undertaken to maintain the ecological balance and protecting the environment.

In the year 2007 alone, 1,88,300 hectares of cultivable land has been used for all kinds of construction work including infrastructure development. Another 17,900 hectares of cultivable land has been destroyed due to natural disasters. Another 25,400 hectares of cultivable land has been used for environmental conservation purposes. On the other hand, 1,95,800 hectares of uncultivable land has been converted into cultivable land. In the course of these changes, a total of 4900 hectares of land has been wasted. All this adds up to a net decline in cultivable land by 40,700 hectares.

Agricultural Production: According to estimates, the population of China will cross 143 crore in 2020. In order to cope with this, China has accorded importance to the development of agriculture. They have decided that under no circumstances should the total cultivable land in the country be less than 12 crore hectares. In this context, it should be noted that in 2007, out of the total cultivable land of 12.37 crore hectares, 10.55 crore hectares were devoted to the production of foodgrains. The total production of foodgrains was 50.15 crore tonnes. This implies that the yield of foodgrains per hectare in China is above 8752 Kg. The data for other crops is given in the accompanying table.

Crop	Area Under Cultivation (Million Hectares)	Total Production (Million tonnes)	Yield (Tons Per Hectare)
Cotton	5.59	7.60	1.359
Oil Seeds	10.94	24.61	2.249
Sugar and sugar like products	1.67	111.10	66.526

Note: 10 million = 1 crore

Although the area under cultivation for tobacco and tea is not known, the total production for these two commodities was 2.39 million and 1.14 million tonnes respectively. For vegetables and fruits, the area under cultivation as well as production is increasing continuously, particularly in the rural areas adjacent to the cities. This is also being driven by the changing food consumption patterns.

Fertiliser Use: The use of fertiliser and micro-nutrients is based upon soil testing. As a result of the policy initiative of the Agriculture Department between 2005 and 2007, soil testing laboratories have been established in 2000 counties, costing a total of 160 crore Yuan. The goal of the Agriculture Department is to improve the use of fertiliser by 3-5 per cent, increase productivity by 5 per cent and to enable recycling and reuse of 40-50 per cent of the fertilisers already contained in the soil. The Agriculture Department believes that if the farmers adopt the new methods, the use of fertiliser can be brought down by 1.17 crore tonnes by 2030 while increasing the production of foodgrains to 64 crore tonnes.

In the year 2000, China conducted two path-breaking experiments on recycling waste as organic fertilisers. The other part of the experiment was on the use of biogas technology. The results of the experiments showed that with recycling of organic waste (bio-waste, straw and others) almost 10,000 tonnes NPK�s worth of fertilizer use can be reduced. At the same time it was also seen that through the use of biogas technique, the use of fertiliser and electricity in rural areas could be reduced by 42 per cent and 37 per cent respectively. It is also possible to reduce the nitrogen pollution in air and water by 20 per cent and 30 per cent respectively. Large-scale initiatives have been taken in order to implement these alternative techniques. Miyun County near Beijing had pledged to make itself a chemical fertiliser free county in 2001. The Director of Services in Dalian has also banned the use of chemical fertilisers and pesticides within 5 km from city. The Director of Jiangsu has decided to reduce the usage of nitrogen fertilisers by 20 per cent and pesticides by 30 per cent around the Tai lake area.

The production and exports of fertiliser has also grown on expected lines. Domestic chemical fertiliser use has crossed 48.7 crore tonnes. Following the steep global rise in fertiliser prices, fertiliser subsidy was increased from 300 Yuan per hectare in 2006 to 450 Yuan per hectare in 2007. Subsidy on micronutrients has also been increased from 300 Yuan per hectare to 600 Yuan per hectare.

Fish, Meat and Milk: In 2007, China�s aquatic products� production was 4.73 crore tonnes. According to the estimates of the United Nation�s Food and Agriculture Organisation (FAO), China�s per capita yearly consumption of fish is 26 kg, while for the rest of the world it is 14 kg. China is currently the sixth largest importer of fish in the world and is shortly expected to become the third largest importer of fish after Japan and the USA. Fisheries and fish processing industries have grown at a fast pace in China to surpass Norway and emerge as one of the largest exporter of fish and fish products in the world. China currently has 7.5 per cent share of the global trade in fishes and fish products. This also indicates that a significant part of the Chinese fish imports is aimed at processing and exports.

The total production of meat in China was 6.8 crore tonnes in 2007. Over the last 18 years, the consumption of broiler, pork and beef has increased at a very fast rate, which is higher than the growth rate of the population. In 2007, China imported 1,24,000 tonnes of broiler meat. Higher domestic consumption has also led to a decline in beef and pork exports, which currently stand at 76,000 tonnes and 1,52,000 tonnes respectively. In this context, the relation between meat production and the production of foodgrains needs to be noted. This is because in order to produce meat, the animals have to be fed with foodgrains. This issue came to the fore during the debate over US president George Bush�s remarks on the Indians and Chinese having more food in recent years. The Chinese informed that for the production of 1 kg of beef, 7 kg of foodgrains are required while for the production of 1 kg of pork and broiler meat, 6 kg and 2.6 kg of foodgrains are required respectively.

As a result of the improvement in the standard of living in China, the demand for milk is rising rapidly. While the consumption of milk is not uniform all over the country, it is very high in the big cities. For example in Beijing, the per capita demand for milk is 46.2 kg. There are 1.4 crore cows giving milk in China, while the total milk production is 3.4 crore metric tonnes. The growth rate of the number of cows giving milk and milk production per annum is around 10-15 per cent. Bulk of the milk production is in the North-East, North-West and Central North regions of the country, while the demand for milk is higher in the Eastern and Southern parts of China.

The major share of milk production (60 per cent) comes from home-based dairies. There are three parts of this system: (a) Small private ownership using 10 cows on average (some households have 50-100 cows); (b) Rural milk production centre which is generally situated in the middle of the village where cow-owners bring their cattle for milking; (c) Hotel-farm system where the cow owners also own shares of the enterprise.

The second system of milk production is the National Milk farms. These farms generally have 800-2000 cows and have advanced management and technology. Eight per cent of the total number of cows in the country is with these farms. The third system is that of big dairies, which have upto 10,000 cows. Three per cent of total cows in the country are with the big dairies. Lack of access and use of modern technology and the rising cost of feedgrains pose problems for the small milk producers.

SOME PROBLEMS

The high GDP growth rate in China, which has been maintained consistently over nearly three decades, has attracted a lot of attention. However, the development process has also increased inequalities. The gap between rural and urban per capita income has increased. In 2007, the urban per capita disposable income was 13,786 Yuan, while that of rural China was 4140 Yuan. In 2000, the ratio of urban to rural per capita income was 2.78:1, which increased to 3.31:1 in 2007. Clearly, inequality has increased between urban and rural China. In 2007, 1.2 crore jobs have been created in the urban areas. Urban unemployment rate has come down to 4 per cent. On the other hand, according to the Agriculture Department, 12.6 crore youth have migrated to urban areas in search of jobs. According to the data published in China Daily, as compared to 1990, the percentage of total household expenditure on food, clothing and housing has declined in 2006, while the proportion of total expenditure on health, education and transport has increased.

The other problem is of poverty eradication. According to China�s norm, persons whose per capita income is less than or equal to 785 Yuan are extremely poor people while those whose income is between 786-1067 Yuan are poor people. According to government sources, people living under extreme poverty and poverty are 1.47 crore and 2.84 crore respectively. Although the number is not very high as a proportion of China�s total population, it is not insignificant in absolute terms.

RURAL DEVELOPMENT:

RECENT INITIATIVES

The Chinese believe that the goal of scientific development strategy should be the building of a �harmonious society�. Simply relying on high GDP growth without adequate social development and progress is not considered to be a correct approach. The main aim of national development should be to satisfy the ever increasing material and cultural needs of the people. According to them, the basic aspect of scientific development is to �put people first�. The main slogan for reducing the rural urban gap is �Make rural urban�. As a part of China�s �New Country-side Programme�, agricultural taxes have been abolished. Free education upto 9 years has been made compulsory for rural children. The subsidy system has also been strengthened. The Chinese government fixes the Minimum Support Price for farmers in order to procure foodgrains. In addition, the government also ensures that the MSP is linked to the price index of primary articles so that farmers get higher support prices with increases in the prices of primary articles. The Chinese government seeks to develop agriculture as a modern industry.

In October 2008, the third plenum of the 17th Congress of the Communist Party of China decided: (a) To work towards the development of infrastructure; (b) To develop modern agriculture in accordance with the characteristics of China; (c) To increase the income of the farmers; (d) To improve the services sector and (e) To maintain environmental balance. The ultimate aim of all these measures is to double the rural per capita income by 2020.

The Chinese government has also decided to implement the following measures in the social sectors:

• Ensuring affordable health facilities in rural areas

• To lay more emphasis on disease prevention measures

• To bring into the ambit of insurance local elderly people with government subsidisation

• Ensuring alternative livelihood beforehand for persons whose land is to be acquired for any purpose

• Improving the various social security allowances

• Ensuring homes, health care, food, clothing and cost of burial for those people who have lost capacity to work and do not have any kin to take care of them.

NEW DECISION ON

LAND OWNERSHIP

After the detailed deliberations on the issue of land ownership, the third plenum of the 17th Congress of the Communist Party of China has taken an important decision. Initially, in China the commune system was in place. Later on this was changed and land was given on lease to agricultural households. In the third plenum in October 2008 it has been decided that rural households will be allowed to lease out or transfer land to other persons. The Party has also called for ensuring that all such land transfers are voluntary and that the money from such transactions should accrue to the original lease-holder.

CONCLUDING REMARKS

The Communist Party of China has reaffirmed its pledge to move ahead on the road of building Socialism with Chinese characteristics. At the same time two issues of concern are the following:

1. The recent data on the birth rate in China does not reflect a healthy sex ratio. The female- male ratio at birth is 100:120.22. The reasons for this adverse sex ratio are being looked into for taking corrective action.

2. Whether allowing rent income to some people on the basis of leasing out land is consistent with the principles of Marxism is also being debated.

Since the revolution, China has made significant advances in the face of adversities. From a backward economy, it has steadily moved ahead to become one of the most powerful economies in the world. The success of China in science and technology as well as in the cultural sphere has indeed been spectacular. Hopefully, China will move rapidly and steadfastly on the road to Socialism based on these successes.