The Belt and Road Initiative and China's diversifying food imports: A perspective on the "Five-pronged approach"

Abstract

The diversification of imported food varieties is essential for ensuring China's food security. Since the inception of the Belt and Road Initiative (BRI), there has been a significant increase in agricultural trade cooperation between China and participating countries, facilitated by the "Five-pronged approach" (FPA). However, existing research regarding the BRI's impact on imports has not yet fully addressed the complexities inherent in agricultural trade, such as stringent logistics, customs regulations, inspection and quarantine procedures, and the varying trade costs associated with different agricultural commodities. This underscores a research gap in understanding the BRI's effectiveness in promoting diversified food imports, particularly across distinct food categories. Utilizing the Difference-in-Differences model, this research evaluates the BRI's contribution to China's diversified food imports and the heterogeneity of food types. The empirical findings suggest the initiative significantly promotes diversification in China's food imports, notably in the case of vegetable products, while the expansion of animal product imports continues to require sustained support from the FPA. The mechanism analysis indicates the FPA effectively reduces both direct and implicit trade costs, thereby fostering the growth of diversified food imports in China. Additionally, this study examines the initiative's effect on food and nutrition security among participating countries, highlighting a marked promotion of diversified food imports and dietary diversity. This research reinforces the BRI's pivotal role in advancing food security, both within China and across the participating nations.