Foreign monopoly over the supply chain of soybeans worldwide contributes to the potential collapse of China’s soybean sector, China Business News reported.   China’s soybean imports have amounted to one third of the total global import amount. On one hand, this has resulted from global soybean giants receiving generous incentives from the US government to support their operations. On the other hand, US companies gradually buy or continue to increase their stakes in Chinese soybean manufacturing companies, which allows them to cultivate huge profit by importing soybeans from America and South America. Under such circumstances, China’s domestic soybean processors suffer tremendous loss of income or even deficit while locally produced soybeans suffer from poor sales. Foreign companies have basically controlled 60 percent of China’s manufacturing capacity while the top 4 global food suppliers, including ADM, Bunge Corporation and Cargill, have controlled 80 percent of imported soybean sources. Currently, there are 97 companies who specialize in soybean squeezing and processing, among which 64 are controlled by foreign companies. ADM, Bunge Corporation and Cargill have controlled one third of China’s soybean processing capacity. ADM has bought stakes from 13 processing factories with processing capacity totaling 15,000,000 tonnes.  Cargill has invested in areas such as Dongguan and Nantong and continued acquisitions of other processing factories.  Bunge has acquired Shantong Sanwei. Cheng Guoqiang, an expert with the development research institute at the State Council, estimated that multinational food suppliers would be able to fully monopolize China’s soybean industry in the next two to three years. Domestic soybean production has no advantage over imported soybeans. Since imported soybeans are backed by multinational companies and their capital and incentives, domestic soybean cannot compete on price.  However, domestic soybeans are superior to imported soybeans wit regards to their protein level and oil level. As a matter of fact, domestic soybeans are cheaper than imported soybean when all these factors are counted.   According to Liu Zhaofu, general manager of China Soybean Net, soybean farmers in Heilongjiang Province currently still have 20 percent of soybean unsold, which is much higher than the average of the previous year. In certain areas, some farms still have 60 percent of soybeans left unsold. Prices are forced down rapidly. A researcher with the international economic research institute at the Ministry of Commerce pointed out that the weakness of the domestic soybean sector does not lie with the price level but in core competencies.  Chinese domestic agricultural products are excluded from foreign-controlled processing units. The soybean sector is only one of the endangered sectors. Corn and cotton sectors are also at risk.