Seeds of Collaboration: Australia and China in the Age of AgTech  

Motivations

Food security has been a major cause of concern for the People's Republic of China (PRC) over the past few decades, with the State Council labelling it as a “top national priority”^[3] and in 1996 issuing a white paper that set a 95% self-sufficiency target for grains.^[4]  It has been of particular importance for President Xi Jinping. According to the American think tank, the Center for Strategic and International Studies, from 2012 to 2022 Xi Jinping “engaged directly on food security topics 67 times, including through domestic province inspections and instructions to local governors on how to manage agricultural production.”^[5] Xi Jinping has called for, “The food of the Chinese people must be made by and remain in the hands of the Chinese.”^[6]

The concern stems from unease over China’s heavy reliance on food imports, which is now exacerbated by rising global tensions and rivalry with the United States. Currently, China is the world’s largest agricultural importer. Although it has been able to achieve its goals of self-sufficiency in stable grains such as such as rice and wheat,^[7] China still relies heavily on imports for key feed grains. Last year, China imported 105.03 million metric tons of soybeans from the US and Brazil,^[8] highlighting a critical dependency in its agricultural supply chain.

China also faces issues of declining arable land. Currently, on a per capita basis, China has one-third of the arable land of Brazil and one-sixth that of the U.S.^[9] Of that land, around 40% was reported in 2014 to have been heavily degraded by “overuse, erosion, and pollution”.^[10] In 2022 the State Council launched a nationwide soil survey, the first in 40 years, that is set to be completed later this year.^[11]

There is also the problem of a declining number of agricultural workers due to demographic changes. By 2035, China is estimated to have around 32.7% of its total population aged over 60,^[12] a vast increase over its already high percentage of 21.1%.^[13] Alongside this, the rate of urbanisation is also increasing, with estimates suggesting it will reach 75–80% by 2050.^[14] As the population grows older and becomes increasingly urbanised, there will be fewer able-bodied people in rural areas available to work in agriculture.

Climate change has also been a source of concern, as rising temperatures and erratic weather have created risks to the country’s agriculture, including droughts in the North China plains threatening wheat and maize yields,^[15] typhoons along the coastal regions destroying vegetable and fruit crops,^[16] and sudden frost in southwest China impacting tea and lychee production.^[17]

Thus, the combined impact of food security concerns, degrading arable land, diminishing numbers of agricultural workers, and the growing threat of climate change has led to agricultural technology becoming a strategic priority for China’s developmental goals. The Chinese AgTech industry has been given immense support by the central and provincial governments. In May this year, several government departments issued the “Opinions on Accelerating the Overall Efficiency of the Agricultural Science and Technology Innovation System.”^[18] This document set guidelines to further improve the AgTech industry, aiming to “establish a high-functioning innovation system” by 2035.

Historically, the development of the AgTech sector has coincided with China’s practice of securing arable land abroad. This includes the acquisition of land in South East Asia, Africa, Oceania, and North America. However, in recent years, that practice has slowed down, due to a mixture of increasing global scrutiny and economic slowdown. For example, in 2023, around 2.1% of Australian arable land (7.596m hectares) was either owned or leased by Chinese and Hong Kong entities, making them the largest foreign investor of Australian arable land, but it was also a decrease from previous years’ holdings by 2.5 % (190,000 hectares).^{[19], [20]} Developing AgTech seems to have outpaced the practice of buying foreign land, as it appears to command much stronger strategic protection and more attractive returns on investment.

Advances in Chinese AgTech

Agricultural Machinery

China is currently the largest producer of agriculture equipment and vehicles by unit volume and is the largest agricultural machinery market in the world.^[21] In the provinces of Shandong, Henan, Jiangsu, Liaoning, and Zhejiang there are over 2500 different agricultural equipment manufacturers.

Over the past decade, the PRC has put in place a multitude of subsidies for farmers and manufacturers to upgrade the country’s agricultural machinery. Since 2004, the Ministry of Agriculture and Rural Affairs has been implementing the Agricultural Machinery Purchase and Application Subsidy,^[22] in order to support farmers in purchasing and upgrading their agricultural equipment, recently including “high-performance seeders, intelligent high-speed rice transplanters, large-scale intelligent high-end combine harvesters”.^[23]

In June 2024, the Ministry of Agriculture and Rural Affairs reported that more than 250,000 combine harvesters with a feeding capacity of 9-10kg per second were operating on wheat farms in China, meeting the demands of the winter harvest, and achieving 57% completion by June 2024, 17.7% higher than what was reached in June the previous year.^[24]

At the forefront of China’s high-tech machinery is the BeiDou Navigation Satellite System, a satellite-based radio navigation system operated by the China National Space Administration. Providing “all-time, all-weather and high-accuracy positioning, navigation and timing services”, the system has been integrated into 2.2 million agricultural machines in China.^[25] The BeiDou system has also enabled advanced Chinese agricultural vehicles to work autonomously and remotely. One recent example is the Honghu T70, a fully autonomous electric tractor. Developed by Shiyan Guoke Honghu Technology, the T70 is powered by a lithium battery and can run on its own for up to 6 hours, able to handle all core fieldwork such as “tillage, seeding, inter-row cultivation, and even harvest support”, all while being driverless.^[26]

However, the adoption rate of high-tech machinery on Chinese farms is relatively slow. This is because the vast majority of rural farms are less than 2 hectares,^[27] rendering the purchase of such machines economically unfeasible. Consequently, this has driven growth in the high-tech machinery export market, which reached USD $9.305 billion in the first half of 2025.^[28]

Drones 

Drones have long been an industry favoured by the Chinese government, as they have supported the rise of the “low-altitude economy”, which refers to the emerging economic sector operating in the airspace 1 kilometre above the Earth’s surface. The agricultural drone market, in particular, has been receiving support in the form of subsidies since 2014.^[29] The industry has advanced to such an extent that China is now on the leading edge of drone technology.

The Chinese drone company DJI is one of the most popular drone manufacturers globally, with the company reporting that approximately 400,000 DJI Agriculture drones are used worldwide.^[30] The company claims that one-third of farms in China are regularly sprayed using its drones. Spraying by drones outperforms the traditional methods – such as those using tractors or aircraft – in terms of “accuracy, efficiency, and consistency”. It has been reported that, drones “can work 4 to 10 hectares in one hour” and increase the effectiveness of pesticides by 20%.^[31]

Agriculture drones from DJI and other Chinese manufacturers, such as XAG, are also able to perform the complex task of spraying pesticides on farm areas in challenging terrain. They are continuously innovating, “optimizing nozzle design and airflow dynamics”,^[32] enabling increasingly accurate and economical spraying for different pesticides and varying field conditions, while also continuously bringing down the price of their drones. For example, the DJI Agras MG-1 crop spraying drone dropped in price from USD $15,000 to USD $5,000 within a couple of years.^[33] Outside of China, they have been able to adapt to different regions, such as Brazilian coffee fields and Romanian vineyards.^[34]

Drones are also helping Chinese farmers manage the effects of climate change. Chinese manufacturers are equipping their drones with Internet of Things (IoT) technology to better analyse fields and weather conditions. This includes hyperlocal weather forecasting, where drones sync with BeiDou satellites to “adjust flight paths and spray schedules in real time,”^[35] while soil moisture sensors relay data to drones, enabling precision irrigation – resulting in a 40% reduction in water use in arid regions.

Artificial Intelligence

A recent addition to China’s growing AgTech industry has been Artificial Intelligence (AI). Highlighted by the National Smart Agriculture Action Plan (2024–2028), the PRC aims to increase the use and reach of AI in farming, including “AI-powered breeding systems, intelligent applications in crop and aquaculture production, and smarter machinery with advanced perception and decision-making capabilities.”^[36]

Notable breakthroughs in AI-powered breeding include GEAIR (Genome Editing with Artificial Intelligence-based Robots). It is the world’s first AI-powered robotic plant breeder, developed by Chinese scientists at the Institute of Genetics and Development Biology at the Chinese Academy of Sciences. On the farm, GEAIR is able to use AI to identify flowers ready for pollination, as well as identify sterile male flowers, improving cross pollination.^[37]It then autonomously transfers pollen from one flower to another, via its robot arm, with high accuracy.^[38]

Farmers have also begun to use AI to increase sales revenue. In Liangshan, lychees are graded by AI in terms of size and colour, then assigned to different sales channels, maximising profits.^[39] To encourage other use-cases of AI, the Ministry of Agriculture and Rural Affairs and tech giant Tencent have jointly launched a plan to promote AI in rural areas. Over three years, they plan to provide both rural government officials and key figures in the commercialised agriculture industry with free training on AI.^[40] AI is still a nascent addition to the AgTech field, but it is an addition that China is already capitalising on.

Biotechnology 

Although China has in recent years been at the forefront of breakthroughs in biotechnology, the country is a latecomer to the world of genetically modified crops. Last year, the PRC approved gene-edited wheat for the first time, as well as genetically modified corn and soybean seeds.^[41] In China’s comprehensive plan for bolstering its agriculture industry, the government has highlighted the importance of biotechnology, seeking development in “independent and controllable seed sources.” The aim is to create high yielding crops that are resistant to drought, pests and other adverse conditions. In the coming decade, “China is poised to initiate large-scale commercialization” of genetically modified corn and soybeans.^[42]

Desert Soilisation Technology

To combat the lack of typical arable land and increasing desertification, Chinese scientists have sought ways to transform arid, barren regions into farmable land. Scientists at Chongqing University, led by Professor Yi Zhijian, developed a water-based paste in 2013 that, when mixed with sand and applied to the desert ground, can give it properties similar to soil, “with the same capacity to sustain water, air and fertilizer.”^[43] Commercialised in 2023, the Chongqing team has already launched operations in deserts of Saudi Arabia and the Sahara Desert.^{[44], [45]}

Other advances in desert soilisation include “Huayouza 62”, a saline-alkali-tolerant variety of rapeseed that, when introduced to salt deserts in Xinjiang, can turn the soil into arable land that is able to sustain a variety of crops.^[46] It does this by being harvested back into the soil as green manure, enriching the soil with organic matter and improving its quality, helping farmers to cultivate winter wheat, cotton and tomatoes. At least 40 hectares of soil in Xinjiang have been transformed by this process into good fertile land.

Researchers at the Northwest Institute of Eco-Environment and Resources in Lanzhou have also taken the traditional anti-desertification methods of straw checkerboards to new levels. Cultivating a drought-resistant cyanobacteria, the research team has been able to use the bacteria to create a “living carpet” that has the ability to stabilise sand within 10-16 months. Currently covering about 267 hectares of sandy land in Ningxia, this method is able to protect against, and even reverse, desertification.^[47]

Opportunities for Australia

China is Australia’s largest export market for agricultural products, accounting for up to AUD $17.1 billion annually. However, as China advances towards greater self-sufficiency, demand for certain Australian agricultural exports is expected to decline. Currently, no other market can compete at the same scale for premium exports, as was discovered when Australian lobster and wine suppliers faced difficulty in finding alternative markets during the diplomatic freeze.^[48] Fortunately, China’s shift away from foreign agricultural imports is expected to be gradual, providing Australia with breathing room to diversify and secure new markets. In the meantime, China’s growing emphasis on AgTech could open new growth channels for Australian AgTech innovators.

Currently, Australian agriculture firms do little in terms of taking advantage of China’s new technological advances in agricultural machinery, depending far more on Europe and the United States. For example, around 70% of agricultural machinery in Australia is imported from the European Union and the US.^[49] Imports from China account for less than 10%. 

Much of the AgTech from Europe and United States consists of closed ecosystems, meaning that third-party additions might not be available, and farmers are forced to buy from the original manufacturer. In comparison, most Chinese brands are considered to be far more flexible regarding third party additions, due to the use of open interface standards – which enable rapid switching of farm equipment.^[50] There is the issue of how tech designed for the Chinese environment might need to adapt to the Australian environment. Nonetheless, there is still a significant opportunity for Australian businesses to benefit from advanced Chinese agricultural machinery at lower import costs that doesn’t lock them into closed ecosystems. 

As part of the recent trade war between China and the United States, American tariffs have been imposed on China, including equipment manufacturing, with rates currently at 47%.^[51] Subsequently, as many American brands rely on parts imported from China, US AgTech equipment has become significantly more costly.^[52] Meanwhile, Chinese agricultural machinery – already much cheaper upfront than its EU/US equivalent – is now even more financially preferable for Australian farmers, given the further increase in the pricing of US machinery.

In addition, China has implemented retaliatory tariffs of 10% on US imports, including those on US-made agricultural machinery.^[53] As a result, the trade war has made the Chinese AgTech market more accessible to Australian exporters. As American machinery becomes more expensive due to the retaliatory tariffs, and their increased upfront pricing, this might present an opportunity for Australian AgTech solutions to establish in China.

Despite being an agricultural powerhouse, Australia faces its own challenges when it comes to agriculture, as we have less arable land than China, thus making Australian farmers more willing to adopt new technology. Australian farmers are already well attuned to recent developments and breakthroughs in AgTech. In 2025, 10% of Australian farmers reported using drones in their work.^[54] Australian farmers also take advantage of genetically modified crops. In 2024, over 99% of cotton and 46% of canola planted in Australian farms were genetically modified.^{[55], [56]} IoT adoption is also growing among Australian farmers, with sensors connecting to irrigation, fertilisation, and pest control systems.

Australian farmers have new opportunities to strengthen their industry by leveraging recent advancements in China’s AgTech – such as fully autonomous harvesters – especially as Australian farms continue to face labour shortages. They can also expand their usage of IoT soil moisture sensors, similar to China’s advanced AgTech systems that connect sensors to drones, and to agricultural machinery for integrated and autonomous solutions.

Furthermore, given that 70% of Australian land is classified as either arid or semi-arid,^[57] there is potential to leverage China’s desert soilisation technology to expand arable land in suitable regions – although extensive trials will be required to assess the feasibility and environmental impact. If the technology can truly work at scale, then Australian arid regions such as the Katherine region in the Northern Territory, or south-west Western Australia, which report high levels of dryland salinity, could one day be transformed into fertile, arable farmland.^[58]

Australia and China as Partners

Australia itself is a major hub for AgTech development. Each year, nearly $3 billion is invested in agriculture R&D.^[59] However, among OECD countries, Australia ranks last in turning its AgTech innovations into commercial outcomes.^[60] One key reason for this is that the Australian market is relatively small, making it difficult for start-ups and researchers to commercialise innovation at scale. In contrast, the Chinese domestic AgTech market is vast and growing rapidly. By strategically aligning with China’s AgTech market, Australian researchers and start-ups could unlock greater commercial channels and funding.

China is actively promoting AgTech collaboration, recently renewing its partnerships with the United Nations’ International Fund for Agricultural Development.^[61] Currently, the majority of collaboration and exports occur with countries that are involved in the Belt and Road Initiative. Nonetheless, Australia has a strong history of AgTech collaboration with China, despite a decline in engagement in recent years due to diplomatic tensions – a partnership that should be maintained and strengthened. Notable examples of such agricultural collaborations include:

• In 2012, a joint study done by the Australian government and Chinese government on agricultural collaboration which is documented in the DFAT report: Feeding the Future: A Joint Australia-China Report on Strengthening Investment and Technological Cooperation in Agriculture to Enhance Food Security.^[62]

• In 2019, the University of Western Australia collaborated with the Chinese Academy of Sciences, Chinese Academy of Agricultural Sciences, and the Beijing Genomics Institute to better understand the genome of wheat, laying the groundwork for breeding higher yield varieties for dryland regions.^[63]

Recently, the Victorian State Government released its new China Strategy, which notes the opportunities in China’s growing AgTech sector. The strategy has set a goal to support Victorian businesses and educational institutions to “strengthen innovative partnerships with China in agricultural technology and sustainable practices”.^[64] The strategy highlighted Victorian organisations such as CSIRO’s National Food Innovation Centre, the Monash Food Innovation Centre, and La Trobe University’s AgriBio Centre. This presents a strategic opportunity for Australia to showcase its capabilities within biotechnology and agriculture, as well as to seek out collaborative research partnerships.

In parallel, as China moves towards strengthening its own agricultural biotechnology sector, there is scope for Australian biotech firms to establish partnerships through their expertise in biotechnology and sustainability. This could, in turn, lead to joint innovation and the expansion of market access for both countries.

Conclusions

China’s AgTech boom has been fuelled by a national push for food security, investment in digital agriculture, and advances in autonomous machinery, biotechnology and desert soilisation technologies. Facing limited arable land, demographic shifts and climate risks, China has made technological innovation central to sustaining its agricultural output. These changes have global implications – particularly for Australia, whose export-dependent agriculture sector must adapt to China’s growing self-reliance.

Yet, the same trends could also create new opportunities. Australia can benefit from China’s advances in low-cost, open-interface farm machinery and AI-driven crop management, while offering its own expertise in biotechnology and sustainability. Collaborative projects – like those between Australian universities and Chinese research institutes – demonstrate that cooperation can deliver mutual benefit. Together, the two countries can move from a buyer-seller dynamic to a partnership built on shared innovation and long-term food security.

The Victorian government’s new China Strategy highlights significant opportunities for Australia and China to collaborate in AgTech. To capitalise on these opportunities, Victoria and other state governments should strengthen support for scientific collaboration. They can do this by establishing joint AgTech innovation labs aimed at solving shared challenges, such as developing climate-resilient and salt-tolerant crops. Australian researchers and startups can be encouraged to access and utilise China’s rapidly expanding AgTech market, possibly though a commercialisation corridor with shared pilot sites.

In the Sino-Australian agricultural relationship, Australia should reposition itself from a commodity supplier into an AgTech collaborator. Australian farmers should also be encouraged to view China not just as an export market, but also as a source of advanced machinery and AgTech – technology that could revolutionise Australian agriculture.

China is moving into a phase where technological innovation – rather than land acquisition – determines agricultural power. For Australia, this presents a pivotal moment: to engage proactively through AgTech co-innovation, joint research, and commercial partnerships, or risk falling behind as a reactive observer. China is ready to leap into a new age of agricultural technology, and it would be a missed opportunity if Australia does not take the leap as well.