In domestic market majority of the prices of the grain are higher when compared with the global market. Under the consideration of the rural-urban income disparity such prices of domestic grain are still though low. So as to raise the domestic prices instead of lowering those down the government tried to change the grain distribution and procurement system. In conditions like these, it is very difficult for the Chinese economy to think of opening the agriculture market very rapidly. As long as industrialization could draw majority of current farmers out of the agriculture, increase imports in long run is a policy option.
It has been seen in one of the study conducted which said that the China would lose about 19.21 million jobs if it liberalizes all its agriculture market; this accounts for about 46.2% of the current farming employment. The concern regarding the food security is the only reason why China decided to select self-reliance policy in agricultural sector. It is politically difficult to convince the policy makers to take into consideration the agricultural globalization policy with the recent cases of grain embargo and famine in the early 1960’s.
It could be said in conclusion that many challenges are posed by the process of globalization and at the same time it has many variant facets. However, there are many nations who have to face the risk which are very difficult to manage as they related to their incorporation in the global markets and global economy. One of the immediate impacts of the same is that the process of globalization raises the political risks, aggravates inequality and it also contributes in widening the social cleavages which are already present. The major challenge associated with the same is to make sure that there exists an orderly change to less rent-seeking, more competitive and economy systems based on rules with more readily access to the social assets like health and education. From the discussion above, it could also be seen that even though globalization would have had several positive effect on the Chinese economy but at the same time there are some negative impacts which have affected their economy badly and there are some probable factors which could assist if globalization is persist in China.