China may expand agribusiness in South-east Europe

Significance

Rising EU grain exports, coinciding with doubts over supply from Ukraine and Russia, are likely to attract the attention of China, which already has agricultural investments in South-east Europe. However, there are geopolitical and other barriers to negotiate.

Impacts

• Cooperation between Chinese and South-east European agricultural research institutions is expected to increase.
• Technology transfers will be ramped up, with a view to increasing product diversity and crop safety.
• EU states' support for Taiwan will provoke a reaction from Beijing, regardless of trade ties, as Lithuania's experience attests.