Rural Revitalization Key to Further Success

Wang Fengjuan

Charoen Pokphand Group Chairman Dhanin Chearavanont hails Chinas strategy for rural development in the new era.

“The rural revitalization strategy proposed at the 19th National Congress of the Communist Party of China [CPC] charts a course for the development of rural China in the new era，” remarked Dhanin Chearavanont， chairman of Thai agribusiness giant Charoen Pokphand （CP） Group. The senior businessman said that while reading the report of the 19th CPC National Congress， he was particularly impressed by statements such as “Addressing issues related to agriculture， rural areas and farmers should have a central place on the work agenda of the Party，” “We will establish industrial， production， and business operation systems for modern agriculture，” “We will develop appropriately scaled agricultural operations of various forms，” “We will encourage small household farmers to become involved in modern agriculture，” and “We will support and encourage employment and business startups in rural areas and open up more channels to increase rural incomes.”

As a Thai entrepreneur who has launched business operations in China， Dhanin Chearavanont believes that Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era encapsulates the practical experience and collective wisdom of the CPC and the Chinese people while testifying to the leadership and creativity of the CPC. From his perspective， a series of policies involved in Xis thought， including those for rural development， answer the call of the times and offer Chinese wisdom and solutions to the world. In particular， such policies offer Chinese experience for other developing countries to learn from.

Supporting Chinas Rural Development

Chinese President Xi Jinping， who also serves as General Secretary of the CPC Central Committee， has said that China can become strong， beautiful and wealthy only if its agriculture is strong， rural areas are beautiful and farmers become better-off. With the implementation of accelerated agricultural supply-side reform， a promising future can be predicted for Chinas rural development. For CP Group， an agricultural conglomerate that has invested in China for decades， Chinese Minister of Agriculture Han Changfu has affirmed support and expressed hopes that CP will play an even greater role in Chinas agricultural development.

Since it entered China nearly 40 years ago， CP Group has devoted tremendous passion and effort to contributing to Chinas agricultural growth. It has given Chinese consumers access to a variety of quality products ranging from food and tea to seeds and animal feed， adding impetus to the development of agriculture， rural areas and farmers in China. The United States-based Harvard Business School has selected CP Groups outstanding practice of investing in Chinas new countryside construction as a classic case for study.

In recent years， CP Group has continuously expanded investment in China and taken an active part in Chinas rural development. To address the farmers predicament of a lack of capital， out-of-date technology and limited market access， CP Group initiated a four-pronged development pattern that involves the government， enterprises， banks and agricultural cooperatives in the Pinggu District of Beijing and launched a “1+5” （government plus leading enterprises， financial firms， cooperatives， farmers， and impoverished families） poverty relief operation in Zitong， Sichuan Province. Through agricultural industrialization based on an integration of advantageous resources of all parties involved， these pilot projects provide secure income for farmers， which lifts the poor out of poverty for good. In 2017， the CP-funded modern agricultural industrial park in Cixi， Zhejiang Province， was included by the Chinese Ministry of Agriculture and Ministry of Finance on the list of national modern agricultural industrial parks， ranking second among the 11 parks on the list.

Chearavanont sees overseas Chinese as both investors and beneficiaries in the Belt and Road construction， who not only contribute to the implementation of the Initiative， but also share in its benefits. He hopes that overseas Chinese entrepreneurs in ASEAN countries will take advantage of their Chinese background and connections to explore new areas of cooperation in the context of the Belt and Road.

Maximizing the Value of Agricultural Products

China has a population of over 1.3 billion， so the rural development issue is vital to the countrys economic development and social progress， said Chearavanont. Application of Industry 4.0 technologies can help boost agricultural production and food processing while propelling the development of logistics companies.

“I suggest that banks offer capital to farmers and small and medium-sized enterprises so that they can achieve development as the worlds cutting-edge 4.0 technologies are introduced into China，” he added.

A few months ago， an unmanned dumpling factory located in Qinhuangdao， about 300 kilometers from Beijing， became a viral sensation online. The factory is a new project funded by CP in China. “Our goal is to serve as a global kitchen， and so far we have invested in three of the five BRICS countries，" Chearavanont said. According to him， CP has invested nearly US$2 billion in Russia， a future major country in the agriculture and food industry， with plans to exploit the abundant resources of Siberia. It first entered India 18 years ago and began increasing investment recently. China remains a top priority among target countries of CPs investment.

“Agricultural products are a cornerstone for economic development， so policies should not simply focus on lowering their prices， but instead allowances should be made available to low-income urban residents so that they can afford safe， diverse agricultural commodities，” Chearavanont said. In his view， agricultural products are a form of national wealth and a renewable energy source. In a sense， agricultural products are even more important than oil given that they are imperative for meeting peoples basic living needs.

Chearavanont explained that in some countries， because they worry that low-income urban residents cannot afford expensive commodities， policymakers tend to lower prices for agricultural products. As a result， farmers purchasing power remains weak and low-income workers in cities can still barely make ends meet. An agricultural price drop can also lead to surplus product and surplus capital， which will be used to purchase other commodities. Thus， skyrocketing prices for other commodities will eventually cause inflation.

“The prosperity of a nation largely depends on the prosperity of its farmers，” Chearavanont noted. “Only when its farmers become wealthy can the nation see huge potential for economic growth.” He complimented the Chinese governments policy of keeping agricultural prices at a reasonable level while making constant efforts to improve the living quality of vulnerable groups in urban areas， which has proved successful in practice.

“Countries involved in the Belt and Road should work together to turn the Initiative into reality， and cooperation in the field of agriculture is set to play a key role，” Chearavanont said， adding that he believes that the Belt and Road not only contributes to national prosperity and company growth， but also brings tangible benefits to ordinary people. Agricultural development will no doubt propel the development of industry， commerce and services， he said.

“This truly represents the guiding principle of the Initiative： extensive consultation， joint contribution and shared benefits，” Chearavanont asserted.

In an interview with China Report ASEAN， Chearavanont， a seasoned entrepreneur in his late 70s， used three “greats” to describe Chinas governance experience and the Belt and Road — “great opening-up”， “great innovation” and “great wisdom”.