Newly released data shows China spent a record RMB 23.9 billion (USD 3.8 billion, EUR 3 billion) subsidizing fuel for its fishing vessels in 2012, compared to RMB 17.1 billion (USD 2.8 billion, EUR 2.1 billion) in fuel subsidies paid to fishing vessel owners in 2011, a year-on-year increase of 63.8 percent. Subsidies for scrapping vessels and “preserving fish resources” will total RMB 400 million (USD 64.3 million, EUR 50.2 million) this year, according to the Ministry of Agriculture in Beijing in a statement this week. Subsidies also go to freshwater fishers: from 1 April to 30 June, the Yangtze River and Hanjiang River basins in Hubei province will be closed to fishing in order to encourage restocking of the rivers with fish.
The fisheries sector gets an impressive share of subsidies compared to some other areas also administered by the Ministry of Agriculture. Compared to RMB 23.9 billion (USD 3.8 billion, EUR 3 billion) for fisheries, grain farmers for instance will only get RMB 15.1 billion (USD 2.4 billion, EUR 1.9 billion) in 2013 to help them improve yields.
Seafood products producers can also apply for subsidies supporting “stocking and processing of raw agricultural products” through which 18 types of processing rooms and facilities are subsidized by the ministry to a maximum 30 percent of the cost of construction. This fund was worth RMB 500 million (USD 80.4 million, EUR 62.8 million) in 2012.
Another RMB 200 million (USD 32.2 million, EUR 25.1 million) was assigned in 2012 for the building of 756 demonstrative aquatic breeding farms in 26 provinces: each qualified applicant farm gets RMB 250,000 (USD 40,207, EUR 31,395) under the scheme, which is part of an overall government effort to keep inflation of food prices (a particular fear of Chinese officials) under control.
While China has been criticized for subsidizing its manufacturing industries, the country’s seafood catch and processing firms are also being cushioned with government handouts. Beneficiaries of subsidies include fishing firms like Shanghai-based Kaichuang Marine and state-controlled CNFC Overseas Fishery Co. The firm made RMB 50 million (USD 8 million, EUR 6.3 million) in the first nine months of 2012 but took in RMB 80.5 million (USD 12.9 million, EUR 10.1 million) in diesel subsidies. CNFC took RMB 60.5 million (USD 9.7 million, EUR 7.6 million) and RMB 61.8 million (USD 9.9 million, EUR 7.8 million) in subsidies and profits, respectively, in 2011. CNFC and Kaichuang both receive subsidies to build and renovate its larger vessels.
Home to the world’s largest marine fishing fleet and aquaculture sector, China is not keen to publicize subsidies to its offshore fishing fleet given sensitivities over China’s role in overfishing and illegal fishing globally. China’s “offshore marine fishing” catch totaled 12.4 million tons in 2011 according to the Ministry of Agriculture, which didn’t provide a 2012 figure.
Government support for the fishing and aquaculture sector could be as much as RMB 500 billion (USD 80.4 billion, EUR 62.8 billion) when regional and national subsidies for rural-based fish farmers are taken into account. China's aquaculture and fisheries sectors are both benefitting from a general ramp-up in government spending to spur rural growth and lift incomes among peasants, seen by Chinese policymakers as the most disadvantaged section of society but also a new source of consumption spending. In 2011, the central government paid a record RMB 1 trillion (USD 160.8 billion, EUR 125.6 billion) in subsidies to the so-called “three peasant” sectors of society: rural infrastructure, farm families and agricultural enterprises. The figure was set to rise to RMB 1.2 trillion (USD 193 billion, EUR 150.7 billion) in 2012.
Aquaculture appears to benefit less, at least in direct subsidies. The Ministry of Agriculture for instance announced RMB 400 million (USD 64.3 million, EUR 50.2 million) in national subsidies in 2011 for fish seedlings. Subsidies are also being ramped up regionally, with local governments in aquaculture hot spots like Hainan offering regionalized subsidies.
Faced with limited land and water resources, China has in recent months made much of developing territorial waters to produce food. Zhang Hongzhou, an analyst at the S. Rajaratnam School of International Studies (RSIS) in Singapore points to the recent 18th Party Congress Chinese where leaders pledged that they would enhance China’s capacity for exploiting marine resources. “With strong commitment from the top, Chinese officials and marine experts advocate that the country’s food system be more maritime-based. Development of aquaculture and offshore fishing is being prioritized.”
