Author: Duncan FREEMAN, Jonathan HOLSLAG, Steffi WEIL.

China’s economic growth is spurring a spectacular demand for agricultural goods. At the same time, prices are volatile and can add to social instability. This has led the Chinese government to launch a series of measures to secure foreign supplies. Beijing is therefore resorting to the international market, as well as state-supported agriculture projects abroad. Both strategies are immature, but in whatever scenario their impact on developed and developing food producing countries could be substantial. One the one hand, China’s demand for agricultural products could generate more revenues and investment. On the other, reckless investment aid and investment might threaten impoverished farmers in Africa and Asia. Topics: economic diplomacy, food security and investment. JEL-codes: N5, P33 and P44.