Palestinian farmer Mohammad Naim checks the growth of sugar canes at his farm in the southern Gaza Strip city of Khan Younis, on Oct. 18, 2020. (Photo by Khaled Omar/Xinhua)

The imports of sugar in China is expected to remain elevated for the next 10 years, reaching 5.52 million tons in 2030, growing at an annual pace of 5.8 percent, according to a report released by China's Ministry of Agriculture and Rural Affairs. 

The high level of sugar imports will be backed by China's increasing sugar consumption level. China's sugar consumption will grow 0.9 percent annually, reaching 16.44 million tons in 2030. Domestic production of sugar will also rise to 11.35 million tons in the next 10 years, the report said. 

China's domestic sugar self-efficiency rate is stable at around 70 percent to 80 percent, and most of the imported sugar in China is from countries in Southeast Asia, South America and India, according to Ma Wenfeng, a senior analyst at the Beijing Orient Agribusiness Consultancy.

Ma said that in 2020, China's domestic production remains stable, but as the tariff on imported sugar was lifted earlier last year, imports are now starting to gain a larger share of the Chinese market. 

In May, 2020, China lifted the additional tariff on imported sugar, slashing the tax imposed on sugar from 95 percent to 50 percent. 

Ma also noted that sugar price in China is higher than the international average. The increase in imports will likely put pressure on local sugar companies to upgrade their production technologies and lower cost. 

"Compared to countries in Southeast Asia, the yield rates in some local sugar canes breeds in China, and the automation rate are low, pushing up the price," Ma said.