Olives are not native to China. According to a study in 1981 by Nanjing researchers He Shan-an, Liu Liu and Gu Ying, published by the University of Florence, olive trees were introduced to China in 1940 from France, and one of them survived in Monzhi county, Yunnan province. Only a few other olive trees were recorded, in Sichuan and Taiwan provinces.
It was therefore rather captivating when I learned during a recent study tour to Mianning county, Sichuan, that a businessman from Taiwan has established an olive plantation there, not only as a business but also a project for poverty reduction in the local mountainous community noted for its steep terrain and inaccessibility.
How Lin Chunfu, who, of all things, decided to embark on an agricultural venture in olive oil production in this remote county is quite incomprehensible in the first place. In 2008, after years of engaging in manufacturing industries in Guangdong province, Lin started to ponder a new direction in his business and began to investigate the olive industry and market. In 2009, he invited Spanish olive oil expert Marques de Valdueza to join his team. The team members conducted field research in Italy, Spain, Tunisia, Albania, the United States, Chile, Argentina, and Australia, among others, and delineated three first-level suitable areas; namely, Liangshan, in Sichuan; Wudu, in Gansu province; and Chuxiong, in Yunnan — all in China. The team’s decision to focus on the Chinese mainland was probably driven by Lin’s experience of industrial operations on the mainland, and his familiarity with the people and culture.
After comprehensive comparison of geographical environment, climatic conditions and the participation of local governments, the Liangshan Yi autonomous prefecture of Sichuan (where Mianning county is located) was finally selected. Through research on meteorological data of the past 30 years and multiple analyses of water quality and soil quality, the team selected three high-quality olive tree species that are regarded as treasures in the Mediterranean region for plantation. Luxuriant and fruitful, these varieties are Arbequina, Koroneiki and Arbosana. At the same time, small experiments on 21 other varieties were carried out to prepare tree species reserves.
Planting began in 2011. The next year, the first batch of 40 hectares was started. In 2018, plantation began to roll out on a large scale, and by 2021, more than 1,300 hectares had been planted.
As a business, Lin explained that the company, Peaktop Agriculture, broke even this year, and he anticipated tangible profits from now on. He attributed his success, first and foremost, to formidable support from the local government, both administratively and financially, which allowed his company to gain a strong foothold in the initial years of establishment. The second factor is technical support from local agricultural experts who helped to modify the tree varieties, not only in adapting to the local climate, but also trimming the height of the trees, allowing workers to pick olives from the trees without climbing on ladders.
Lin’s business in the remote, poverty-stricken part of China provides a shining example of how countries and economies can work together to alleviate poverty domestically and achieve sustainable economic development under the BRI
The last, but not the least, factor in the successful formula is the hardworking natives with relatively low labor costs who could be counted on to harvest the olives and retain a profit in this labor-intensive venture. However, Lin is not without his worries. Mianning county is one of the poorest districts in China. Development of the local economy has been constrained by inaccessibility. Typical of the phenomenon known as “the children who stayed behind”, adults and parents left their villages to work in big cities and affluent communities while the elderly attended to the children. The workforce is old, and productivity understandably low. Lin is counting on the development of artificial intelligence, and he is hopeful that AI will help address this issue in the foreseeable future.
Lin recalled that the most challenging obstacle was to convince the locals to lease their land to his company and allow him to plant olive trees, which they had never seen before. Household by household he visited, and through frequent and persistent contacts, Lin gained the trust of the locals. He offered risk-free returns in exchange for the land lease. His perseverance finally paid off.
And this brings us to the topic of poverty reduction. Lin’s visionary and bold entrepreneurial spirit has brought him honors that recognized his company as the showcase base for olive plantation in China, a national “green agriculture demonstration business”, a provincial agricultural and forestry “creative demonstration base”, to name a few. These honors are, however, understatements of what Lin has achieved.
The real achievement of Peaktop Agriculture is introducing to the local economy a sustainable agriculture industry, or new agriculture, characterized by a capital-labor dual intensifying production pattern that effectively links small-farm peasants with modern agriculture. It created employment, broadened the economic base, and stimulated development.
Lin has been promoted by local officials as an example of Taiwan compatriots’ dedication to the motherland. This is of course true. Yet I think beyond that, Lin is also driven by his passion to alleviate poverty in the region. A Chinese proverb says, “Teaching people how to fish is better than giving them fish.” This translates into the action of enabling people in poverty-stricken areas instead of doling out welfare, which is the guiding principle of poverty reduction efforts in China.
On Feb 25, 2021, President Xi Jinping solemnly announced that extreme poverty had been eliminated in China. By the end of 2020, the “poor county” label had been removed for all 832 counties designated by the government as poverty-stricken in 2013. United Nations Secretary-General Antonio Guterres congratulated President Xi on this historic achievement.
The challenge ahead is to prevent these counties from falling back into poverty. In this respect, sustainable development is most important. Lin’s success demonstrates that the collaborative efforts of business and government play an important role. Lin would not have been able to single-handedly build a new agricultural venture in Mianning country without the help of the local government, which has invested in the enterprise and provided financial support. On the other hand, without the entrepreneurial vision of Lin, the establishment of an olive plantation base in the county would not have been realized. The local government has also made a great effort to improve the transportation infrastructure in the area, allowing the finished products from extracted olive oil to be shipped to distributors and end users.
If we put this story into a wider perspective, we can see that it is exemplary of the developmental efforts put forth under the Belt and Road Initiative (BRI). Many developing countries face a common dilemma: They sit on natural reserves but are unable to exploit the reserves because of a lack of capital, technological know-how, skilled labor, and infrastructure. The BRI, through financing facilities extended through the Asian Infrastructure Investment Bank (AIIB), provides financial assistance to countries involved in the BRI for infrastructural development. The AIIB is acknowledged as a borrower-friendly bank that provides financing and co-financing facilities to developing and underdeveloped member economies to promote inclusive and sustainable growth. The AIIB’s membership has grown from 57 founding members since its establishment in 2015 to 106 countries now.
Lin’s business in the remote, poverty-stricken part of China provides a shining example of how countries and economies can work together to alleviate poverty domestically and achieve sustainable economic development under the BRI.
The author is the CEO of the Maritime Silk Road Society.
The views do not necessarily reflect those of China Daily.
