The severe drought of the century, on the other side of the ocean, China had a tremendous impact, has once again proven the "butterfly effect" is everywhere.
First, a severe drought led to corn and other grain production, the U.S. Department of Agriculture to reduce the grain harvest is expected. The global grain market prices along with soaring. Subsequently, as the food a major importer of China, will certainly be affected. This impact is reflected in the spot and futures markets, reflected in the stock market, and the deepest, but it is imported inflation risks rise, has just been pressure to below 3% of the CPI may be forced to rebound.
Since we can not excepted, and how to deal with such indignity?
Researcher Li Guoxiang of the CASS Institute of Rural Development, believe that China should take precautions, long-term view, we need to nurture the right to speak of food pricing.
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