Why Does China Own So Much of Ukraine?

Elisabeth Braw

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Other countries should be careful about allowing sales of farmland to hostile powers.

Russia’s invasion of Ukraine is causing global hunger and galloping food prices, and future supply-chain disruptions will bring more such misery. Many countries are realizing that they should grow more food, but they’ve sold much of their best land to China, which uses it to feed its own population. A few years ago, China bought nearly one-tenth of Ukraine’s arable farmland. Countries should start screening those seeking to buy their farmland, as they already do with prospective purchasers of sensitive technology.

“There can be no effective solution to the global food crisis without reintegrating Ukraine’s food production, as well as the food and fertilizer produced by Russia, into world markets,” United Nations Secretary-General António Guterres said on June 24, warning that the world faces multiple famines this year and worse in 2023. But Ukrainian grains and other foods won’t be able to enter the world market any time soon because the sea route remains blocked by Russia. Ukraine is sending some grain to world markets via rail to Poland and Romania, but doing so is laborious and expensive. Before the war, around 90% of Ukraine’s grain was exported via its sea ports.

Over the past few years, Chinese buyers have bought farmland in countries ranging from the U.S. and France to Vietnam. In 2013 Hong Kong-based food giant WH Group bought Smithfield, America’s largest pork producer, and more than 146,000 acres of Missouri farmland. In the same year, Xinjiang Production and Construction Corps bought 9% of Ukraine’s famously fertile farmland, equal to 5% of the country’s total territory, with a 50-year lease. (In 2020, the U.S. imposed sanctions on the Chinese company over human-rights abuses.) Between 2011 and 2020, China bought nearly seven million hectares of farmland around the world. Firms from the U.K. bought nearly two million hectares, while U.S. and Japanese firms bought less than a million hectares.