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Lewes, DE -- (SBWIRE) -- 06/19/2015 -- Since 2000 when the existing Seed Law of the People's Republic of China was put into effect, many blemishes of the Chinese seed industry have shown up:

1. Protection for germplasm resources is not enough and the resources are not put into fully use;
2. The breeding innovation mechanism does not meet the requirement of the development of the modern seed industry;
3. Protection for new plant varieties is not enough and fake-licensed seeds and other infringement happen from time to time;
4. The complicated management links of seed production need to be simplified;
5. The competitive power of the Chinese seed industry is week in the global market;
6. Rights and obligations of basic level law-enforcement institutes of the seed industry are indistinct;
7. The scope of the legal liability is quite narrow and the penalty is light.

Therefore, on 5 May, 2015, the NPC released the draft to the seed law. The new seed law focused on five principles:

1. To enhance protection on germplasm resources, to encourage innovation and to severely crack down on infringement behaviors;

2. To complete the breeding innovation mechanism and to support basic, advanced and non-public breeding researches;

3. To bring the predominant role of the market into play and guide it and support it to develop;

4. To safeguard security of the seed industry and biology;

5. To reinforce supervision of the whole process.

At present, the new seed law is soliciting for opinions from the public and it is expected to be put into effect at the end of 2015.

The USD/RMB exchange rate in this report is USD1.00=RMB6.1165 on 4 May, 2015, sourced from the People's Bank of China. All the prices mentioned in this report will include the VAT unless otherwise specified.

On 5 May, 201 5, the NPC released the draft to the seed law to solicit for opinions from the public by 4 June, 201 5. The draft law aims to encourage innovation and to deter illegal uses of germplasm resources.

On 28 April, 201 5, Longping High-Tech released its 2014 financial report, showing that though its total revenue decreased year on year, its revenues from rice seeds, corn seeds, wheat seeds and vegetable and fruit seeds were all increased at different degrees.

On 29 April, 201 5, BAAFS and Shunxin Group jointly set up a company named Shunxin Nongke. It shows that the two parties have entered a new phase of cooperation from merely corn variety trade to equity cooperation.

In the recent two years, Chinese seed enterprises have been fond of entering the Xinsanban. As of May 201 5, altogether 10 Chinese seed enterprises have entered the Xinsanban.

Chinese seed enterprises usually adopt four methods to acquire new varieties. They may buy new varieties directly, outsource variety breeding R&D, make pre-contracts for outstanding varieties in experimental fields and then apply for verification, or select superior combinations from private breeders for verification. These methods may enable enterprises to acquire new varieties rapidly, but they block the development of commercialized breeding.

In April, 2015, the Opinions on Building Unified Crop Variety Verification Mechanism in the Beijing-Tianjin-Hebei Region was released, showing that crop varieties within this region will have unified verification and can be promoted in the three provinces (municipals) in the future.

China's pepper cultivation, with planting areas of 1 .53 million ha (23 million mu), is distributed in more than 20 provinces in the whole nation and can be divided into six main producing areas. Based on the observation on the market of pepper varieties in recent years, the market of pepper varieties presents a development tendency of being specialized, highly qualified and high-end oriented.

In early May 2015, Sichuan HUA-OU exported 9,700 olive seedlings to Japan.

In 2014, 86 registrations of seed treatments were newly added in China, including 20 temporary ones. Most of these registrations were of single formulations and FSC.

It has been four years since April 2011 when the State Council released the Opinions on Advancing the Development of Modern Crop Seed Industry. During these four years, the Chinese government issued policies in succession to uphold commercialized variety breeding and to encourage scientific researchers to work in enterprises, in order to reform the scientific research system of the seed industry. However, judging from the current situation, the reform still encounters many handicaps.

Report Covered:

- Major revised contents of Chinese seed law
- New advertisement law supplements advertisement rules of crop seeds
- MOA: to build DNA identification system of crop varieties
- MOA revises registration regulations for seed enterprises
- Bayer: revenue from seed business up 18.69% in Q1 2015
- Revenue of Longping High-Tech down by 3.68% year on year in 2014
- Corn seed enterprise Shunxin Nongke established in April 2015
- Chinese seed enterprises fond of entering Xinsanban
- High-tech R&D center of Shandong Denghai founded
- Four methods for Chinese seed enterprises to acquire new varieties
- Beijing-Tianjin-Hebei region to unify crop variety verification
- China's average hybrid corn seed price reaches USD3.27/kg in early May 2015
- China's average hybrid rice seed price reaches USD11.93/kg in early May 2015
- China's average price of conventional rice seeds reaches USD1.19/kg in early May 2015
- China's average soybean seed price reaches USD1.02/kg in early May 2015
- Main producing areas and main varieties of pepper in China
- Sichuan HUA-OU exports 9,700 olive seedlings to Japan
- China newly adds 86 seed treatment registrations in 2014
- Reform in scientific research system of seed industry encounters handicaps in China
- E-commerce platform of Beidahuang Kenfeng to be launched at end of 2015
- China Golden Marker: national maize molecular breeding platform launched
- MOA reports 16 law-breaking cases of seeds again
- Kings Nower cooperates with Henan Zhenghan
- Construction of China Jiuquan Seed Industry Park begins
- Broadband network to cover 95% administrative villages at end of 2015

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