An Interview with Ning Gaoning: Winning the Battle for Revival and Tackling the “Bottleneck” Challenges in the Seed Industry

On March 5, the Government Work Report called for strengthening the conservation and utilization of germplasm resources, as well as the breeding and promotion of superior varieties, and for tackling key core technologies in agriculture. At the Two Sessions in 2021, Ning Gaoning, a member of the National Committee of the Chinese People’s Political Consultative Conference and Chairman of both Sinochem Group and China National Chemical Corporation, put forward proposals to bolster intellectual property legislation in the seed industry, incentivize substantive innovation, and secure a decisive turnaround in the sector.

Via video link, Ning Gaoning granted interviews to reporters from media outlets including China Business News, outlining how to turn the tide in the seed industry by strengthening intellectual property protection for seeds, as well as sharing his latest reflections on deepening reform of state-owned enterprises. When asked about his impressions of the government work report, Ning Gaoning spoke candidly, stating, “China’s economy has passed its most challenging phase, and the recovery will not leave any lingering aftereffects.”

Reporter: The Central Economic Work Conference called for “waging a decisive battle to revitalize the seed industry,” and the 2021 No. 1 Central Document laid out specific measures to advance seed‑industry development. Is your proposal this year related to “winning the battle to revitalize the seed industry”?

Ning Gaoning: This proposal primarily addresses the protection of intellectual property rights in the seed sector—safeguarding innovation in seeds and ensuring that the rights of IP holders are protected and effectively enforced throughout the process of seed utilization. In essence, it is a matter of protecting innovation.

Reporter: What specific suggestions do you have?

Ning Gaoning: We should promptly adopt the 1991 version of the International Union for the Protection of New Varieties of Plants (UPOV), which is a more advanced standard. Compared with earlier versions, it offers significantly stronger protection and longer patent durations. At the same time, we should vigorously cultivate and introduce germplasm resources and actively advance biotechnological breeding.

At present, Syngenta, a subsidiary of China National Chemical Corporation, is one of the world’s leading agri‑tech groups. It should proactively leverage its strengths to swiftly align with China’s agricultural sector and emerge as a pioneering enterprise that takes on major challenges under a “challenge‑based” leadership model.

Reporter: As seeds are the “chips” of agriculture, where do you think the major challenges lie in overcoming them?

Ning Gaoning: At present, China’s seed industry faces several challenges. First, the overall technological level of seeds—reflected in their impact on yield—is a key issue. Compared with the United States, China’s soybean yields are roughly 30% to 40% lower. Of course, this is not solely a matter of seeds, but seeds account for a significant share of the gap. This is precisely why the seed sector has become a “bottleneck,” necessitating a decisive turnaround—a point that the General Secretary has repeatedly emphasized at both the Economic Work Conference and the Rural Work Conference.

Reporter: “Document No. 1” has laid out a comprehensive policy framework for green agriculture, with particular attention from netizens focused on reducing the use of pesticides and chemical fertilizers.

Ning Gaoning: Seeds, pesticides, fertilizers, and the entire suite of cultivation techniques are inextricably linked; it is difficult to separate them entirely. Different seed varieties may require varying levels of irrigation and fertilization. Syngenta Group has made reducing inputs—water, fertilizer, and chemicals—a core agricultural priority, while also seeking to leverage China’s innovation and seed‑development efforts, particularly through robust protection of intellectual property rights for seeds, to ensure that innovators’ contributions are put to proper and standardized use.

Let’s not view pesticides and fertilizers entirely in a negative light. In fact, today’s pesticides are low‑toxicity, highly effective, and leave no residues, so they do not harm the environment while boosting crop yields.

Reporter: In January 2020, Sinochem Group and ChemChina integrated the core assets of their agricultural businesses to establish the Syngenta Group. What considerations led to this decision?

Ning Gaoning: The core of the Syngenta Group is the former Swiss company Syngenta. Following our acquisition, we have integrated it with Sinochem Agriculture, China National Seed Group, Sinochem Yangnong, and Israel’s Adama to form the Syngenta Group. Today, it stands as a global leader in agricultural technology—ranked first in crop protection and third in seeds.

Syngenta’s agricultural research in China is being rapidly translated into practical applications, and its years of accumulated biotechnology‑based breeding expertise is also being swiftly deployed—both of which are critical tools for advancing Chinese agriculture. In the future, Syngenta Group should become a leading enterprise in China’s agricultural innovation landscape, taking on high‑impact challenges and spearheading breakthroughs.

Reporter: What kind of synergy will emerge when technology meets agriculture? We’ve noticed that you’ve proposed transforming the company into a technology-driven, integrated chemical enterprise.

Ning Gaoning: Several years ago, Sinochem Group set out to transform itself into a world-class, technology‑driven, integrated chemical enterprise, benchmarking itself against the leading global players in the industry.

The necessity of transformation is abundantly clear: in any pursuit of high-quality development and industrial upgrading, the market itself—driven by technology—spurs the emergence of new industries. This has become a benchmark for economic growth and a primary engine for corporate advancement. The key question is whether the merger of Sinochem Group and China National Chemical Corporation can yield more groundbreaking R&D breakthroughs and practical applications in fields such as life sciences and advanced materials. This represents the most critical focus for future-oriented efforts, as the company seeks to chart a new path for sustainable growth.

Reporter: With technology empowering agriculture, what difficulties and challenges might arise?

Ning Gaoning: Of course, there are many issues. First and foremost is the protection of intellectual property, which must be implemented with utmost seriousness and rigor. Why is innovation in China’s seed industry currently low, and why is there such strong homogeneity? China’s current Regulations on the Protection of New Plant Varieties follow an earlier version of the International Union for the Protection of New Varieties of Plants (UPOV) Convention, and the level of protection for original innovation remains inadequate. Moreover, the regulations do not impose sufficiently stringent restrictions on follow‑on, imitative, or modified breeding.

Currently, the domestic seed industry faces the issue of widespread imitation. Many producers are using the same varieties, with a notable lack of genuine innovation and substantial investment—this is one of its most significant challenges.

Even large enterprises find it difficult to invest, and once they do, their innovations may be copied. China’s crop germplasm resource bank is only just being established, and the variety of available resources remains relatively limited; therefore, germplasm resources should be utilized more effectively.

Reporter: This year marks the beginning of the 14th Five-Year Plan period. With a focus on high-quality development, how will Sinochem and ChemChina leverage reform to further unleash their internal vitality?

Ning Gaoning: At present, state-owned enterprises are vigorously advancing their three-year action plan to deepen reform. The development of a mixed‑ownership structure remains an ongoing process. It must be acknowledged that, compared with international peers, SOEs still lag behind in terms of efficiency, innovation capacity, and return on assets. Bridging this gap will require further reforms and adjustments.

The entire reform should be guided by systems thinking; it cannot focus solely on the lower levels while neglecting the upper echelons. If only technology firms are reformed, such piecemeal adjustments will leave the reform incomplete. Instead, we should adopt a backward‑looking approach: to build enterprises that are world‑leading, internationally first‑rate, technology‑driven, competitive, highly efficient, and deliver strong returns on capital, we must work backward from that vision. You should then determine how to structure organizations, deploy talent, design foundational incentive systems, and refine management practices—steps that require even deeper exploration and development.

AgroPages World Agrochemical Network Exclusive article