This chapter assesses the protection and comparative advantage of China's major agricultural crops in six regions, using a modified Policy Analysis Matrix and 1997-2000 data. The following commodities are considered: early indica rice, late indica rice, japonica rice, wheat, maize, sorghum, soyabean, rapeseed, cotton, tobacco, sugarcane, and a subset of fruits and vegetables. The results suggest that, with the exception of high quality rice, the production of grains and oilseeds tends to suffer from a lack of comparative advantage over other crops in China, such as fruit and vegetables, tobacco and cotton. Further, it is concluded that grain self-sufficiency policies reduce allocative efficiency several-fold.
