China's soybean industry should offset impact from increasing soybean imports by maximizing its advantages and applying international trade rules. China's soybean imports have increased tenfold in the past decade to 28.27 million tons in 2006, due to lower prices.

Farmers in East China's Anhui Province collect newly harvested soybeans. First farmers should improve the quality and production of soybeans by using more advanced technology. China's average output of soybeans is about 23 percent lower than the global average, which is seen as the key disadvantage. Farmers should investigate new species and growing techniques.

Second, Chinese farmers should cash in on the advantages of their non-genetically modified soybeans.

Genetically modified soybeans account for a large proportion of major soybean-producing countries' output, including the United States and Argentina, but this is not the case in China.

Experts urged Chinese soybean growers to develop overseas markets, such as European Union members and Japan, which encourage imports of non-genetically modified soybeans.

Third, to minimize the impact of imported soybeans, which benefit from high subsidies at home, the Chinese government could defend domestic soybean growers under the international rules of the World Trade Organization (WTO).

The government should ask developed countries to cut their agricultural subsidies in the Doha negotiations under the WTO framework to create a fair and competitive environment. China could also set up a mechanism to stop foreign agricultural products from entering the markets.

Fourth, the government should consider the impact on agricultural products of the opening up and revaluation of the Renminbi.

The flood of soybean imports from Brazil and the United States has resulted in losses for domestic soybean growers, and also sharp decreases in soybean-growing acreage.

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