Virtual Water Trade: an Alternative for Solving Water Shortage and Ensuring Food Security in China
虚拟水交易:解决中国水资源短缺与粮食安全的一种选择

Virtual water trade is a new idea of alleviating water scarcity and ensuring food security in China. The article introduces concepts of virtual water and virtual water trade, analyzes water crisis in agricultural sector and food security in China, and makes some suggestions for solving water shortage and ensuring food security. Food security is increasingly becoming a serious problem in China due to water shortage and difficulties in increase 150 million tons of food to meet the demand in the coming 30 years. Therefore, food shortage problem could not be fully solved depending solely on traditional measures and techniques. Virtual water trade provides a new solution for this problem. According to current water shortage situation and the research results, 30 million tons of food should be imported in order to close the gap of 30 billion m3 of water deficit through virtual water trade, and this amount of food import will not affect significantly the world food market. It costs 50 billion RMB that is about two percent of the total import value in China, and China is able to import these foods. Virtual water trade is therefore a good opportunity for Chinese farmers to increase their income. Moreover, the cost of virtual water trade is relatively lower than that of the project entitled Water Transfer Project from the South to the North in terms of economics, environment and food security. The article concludes that it is feasible for China to increase 30 million tons of food import to solve 30 billion m3 of water shortage currently and in the coming 30 years. However, virtual water trade for achieving those targets is a long-term strategy and a systematic project. Quantity of food import should be increased gradually. In this regard, China will have to apply both project and non-project measures, including virtual water trade, to improve the conditions. Finally, the article recommends that virtual water trade should be based on the food self-support policy. Increase of 150 million tons of food in the coming 30 years will have to be realized mainly domestically, as virtual water trade can only solve partially food shortage problem.