Importance of the Fishery Industry in China

   Fishery production value as a share of agriculture

   Per capita availability of some major agricultural products

   Per capita availability of some animal products

   Annual gross value produced from fisheries and agriculture

   Annual fisheries production in China

   Fishery Production in 1998

   Fishery production by the end of each “Five Year’s Plan”

   Export of China Fishery Products 1958-1997

   Production proportion of fishing-aquaculture and marine-inland

With rapid development of economy and continuous growth of people’s living standard, fishery industry in China has played more and more important role in the country’s agriculture, even in the national economy.  Since the end of 1970s when China started to carry out the reform and open-door policies, fishery sector has developed rapidly and achieved great results. The fishery output has ranked first in the world for seven years in succession since 1990, making up one fourth of the world total. In 1996, it reached 28.13 million tons (or 32.88 million tons on the basis of FAO calculation), and increased by 5.3 times between 1980 and 1996, an annual increment of 12.1%.  Its output value also raised from 12.6 billion RMB in 1985 to 202.05 billion RMB in 1996 and its share in agriculture output value increased from 3.48% in 1985 to 8.62% between in 1996. 

(Chart 1 shows a steady increase in percentage of value beginning in 1985 with 4.% and going up to 9% in 1996.)

The per capita availability of aquatic products in China increased from 6.7 kg in 1985 to 26.7 kg  in 1996 (see Table 2 & Chart 2) which is above the world average of 20 kg.

(Chart 2 shows amount in kg. from 0 to 60 kg. for years 1985 through 1996 for agricultural products of meat, eggs, milk, and fish. All show increase with meat being the largest commodity and milk being the smallest.)

The development of fisheries has also helped to create job opportunities for the  populations in China’s fishery regions and rural areas.  In 1996, the total number of laborers involved in fisheries production was close to 12.08 million, and about 9 million of these jobs were created after 1979.  The per capita income of fishery population has grown from 126 RMB in 1979 to 3826 RMB in 1996, a more than twenty-nine fold increase, whereas the per capita income of country’s rural population was only 1926 RMB in 1996.

The cause of this unequaled growth is the liberalization of the Chinese economy, and especially the reforms of 1985 that permitted market forces to substitute the former system of State-set prices and production quotas in the fishery sector.  The private initiative thus set loose among fishermen, farmers, cooperatives and State-owned companies alike has completely vitalized the fishery sector along with the following steps that Chinese government has taken:

a)      Encourage aquaculture development.  Since 1980s, the new fishery development policy has given preferential treatment and support to rural aquaculture in terms of investment allocation, taxation and credit to fishermen and farmers in order to encourage their aquaculture activities.  It is estimated that about 460,000 ha. fish ponds and shrimp ponds have been built up so far.  The government has also invested in building up a number of fish seedling farms, fish disease control stations and the technical extension stations to provide the various services between pre-production and post-production, thus ensuring a highly development of aquaculture in China.

b)      Rearrange fishery production management system.  Based on the liberalization of productive forces and development of market economy,  instead of the former highly centralized management system, various responsibility management systems which clearly define the producers’ responsibility, right and benefit have been born one after another , such as contract system, lease system, cooperative system, joint venture between different ownership, private or individual management etc.  All these management systems really reflect the socialist distribution principle that one can get more if he contributes more.  As a result, all initiatives from both producers and managers have been stimulated to vitalize the fishery sector.  In rural aquaculture areas, similar to the reform of agriculture production management, the contract or household responsibility systems are mostly adopted to encourage all efforts to fully make use of all cultivable places including saline-alkali soil, depression soil and wasted muddy-flat.  In fishing villages,  the previous collective ownership of productive means and unified planning, accounting and distribution have been replaced by various new approaches. In some places, the producers are given a fixed production quota or a specific value or a certain amount of profit. They will receive bonus for excess production, whereas they have to make good if the quota is not reached.  In other places, the fishing vessel is taken as a basic accounting unit and allowed to decentralize its production rights and the fishermen to own the fishing nets and gears.  This puts an end once for all to make fishermen unify their ownership, production rights, management rights and distribution rights, and beak up the previous equalitarianism or “the big bowl”.  Currently, the shareholding system is fast developing in the fishing areas but with clearly specified production rights and responsibilities.  With the further reform of fishery industry in China, decentralized production with centralized service system will become more and more important form to promote the industry development.  Its usefulness in larger scale operations has made it well accepted by the fishermen. 

c)      Adjust fish product distribution.  Before the reform, distribution of fish products like any other products in China were highly controlled by the government.  Fishermen or fish farmers were not allowed to go freely to the markets to sell products in their own prices.  In 1985, the government announced that the prices of fish products would no longer be controlled.  This was the first major event in the price reform activities, and happened much earlier than for other products.  From then on, great changes started taking place in the Chinese fisheries production structure, and especially in distribution and marketing where deregulation of prices made possible of private trading at good profits with limited initial investments.  At present, it is estimated that more than 40% of fish products are distributed and sold to final consumers in the domestic market by private firms.  The great economic profits have driven more and more fishermen and fish farmers to initial their fish production with great efforts.

d)      Promote science and technology.  Chinese government has always attached great importance to the application of the science and technology to fishery production.  A number of scientists and technicians have been encouraged to work with fishermen and fish farmers under a serial government preferential policies.  It was estimated that the contribution of the science and technology to the nation’s fishery production grew from 30% in the early 1980s to 47% in 1996.  For example, the yield per hector on pond fish culture was only 724 kg in 1979, but up to 4097 kg in 1996, an increment of 4.7 times.  The development of pen and cage fish culture technology has made the open waters possible to be used for aquaculture.  The discoveries of the new fishery resources such as Sardinops melanosticta, and Anchovy, have provided a potential for marine catch and lighten the pressure on inshore fishing efforts.  Successes of artificial breeding and culture technology in some high value species like shrimp, abalone, scallop, sea cucumber, mandarin fish and fresh water crab (Eriocheir sinensis) have brightened up a way for making foreign currency and enhance fishermen and fish farmers income.

e)      Strengthen fishery law system and fishery resource management.  In order to protect and rationally utilize fishery resources, the Chinese government attached great importance to the establishment of fishery laws.  In 1979, the State Council formally approved the regulations on Fishery Resources Propagation and Protection.  In 1980, the fishing license system was established to ensure the registration of fishing vessels before starting any kind of fishing operation.  In 1985 and 1986, the Fishery Law of People’s Republic of China and the Detail Roles of the implementation on the Fishery Law were issued respectively.  From then on, various local fishery laws or regulations were born one after another.  In addition, fishing banned areas including some parts of seas, lakes and reservoirs, and fishing banned periods have been identified.  In order to curb the frenetic growth of fishing within the coastal areas, the State has adopted the policy of controlling the growing number of coastal fishing vessels, and quotas are imposed on motorized fishing vessels.  Meanwhile, the governments in various levels have built up contingents with well trained personnel and good facilities to enforce the laws.  All of these have played important roles for ensuring a sustainable fishery development in China.

f)       Expand international cooperation.  Up to 1996, China has conducted a number of fishery cooperation with more than 60 nations and international organizations.  Under the principle of mutual benefit, China started the distant water fisheries in 1985.  This has brought China a new direction in marine fishery.  In addition, Over the past years, China has tried to create a better investment climate to attract more and more overseas investors setting up their companies or joint ventures in China.  It is reported that, for the moment, there are more than 2000 foreign companies involved in Chinese fishery industry.

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