Entering WTO and opening agricultural markets: Impact on China's use of foreign funds in agriculture

Foreign investment is a powerful engine in the drive to adjust and develop China's agriculture and agro-food sector. Not only does it supplement the shortfall in domestic capital, it also accelerates and facilitates the take up of advanced technology, and has been an important factor in job creation and absorbing excess labour. China's entry into the WTO will both increase China's need for foreign investment in agriculture and improve China's climate for investment. However, while barriers have been eliminated in almost all the vital fields, a number of impediments remain which will have to be addressed to further foster the environment for foreign investors.