Study on the Impact of GIs on Rural Development in China

Project Overview

Location:
China

Dates:
 

Funding Body:
AQSIQ

Project Status:
Ongoing

This project is being conducted for the Administration of Quality Sanitary Inspection and Quarantine in order to assess the impact of Geographical Indications (GIs) upon rural supply chains, development and the environment in the Chinese countryside. Through the use of previous experience in Europe, the project will analyse the current benefit of GIs on the rural economy in China.

GIs are product names which derive their characteristic and reputation from a local geographical area or local characteristics such as climate, soil type, landscape, water table or a local technique of production or processing. These regional characteristics which relate to the geographical specificity of a registered GI becomes the basis of their protection as an intellectual property and enforced under the TRIPs agreement. GIs have become a particularly important downstream component of European agriculture produce and the EU’s quality policy both domestically and in terms of exports. European GIs, many of which have existed for hundreds of years have grown in fame to become some of the best known product names in the world (for example Cognac, Scotch Whisky, Champagne, Parma Ham, Parmesan Cheese etc). GIs are generally recognised as goods of quality, where their uniqueness and established tradition relate to a specific region; its produce and/ or production process. GIs generally attract premium prices when compared with other commodity goods or brands.

The protection of GIs within certain regions in Europe and their development has had positive impacts on slowing rural migration (an appropriate policy goal for the EU) and strengthening rural economies. In addition to Europe, more recently the positive link has also been established in other traditional agricultural economies particularly in developing countries (e.g., Tequila for Mexico, Darjeeling for India, Ceylon tea for Sri Lanka, etc).

Such a positive link between GI development and rural development is significant for China firstly due to the large number (arguably the largest in the world) of registered and potential GI products that exist throughout the country. Moreover the widening urban-rural economy gap, which the Chinese government is giving increased attention to, can be addressed partly through the use of a GI-based mechanism which would improve quality in production, marketing and promotion, in turn leading onto improved reputation and increased revenues.

• To use experiences from GI development in Europe to analyse current benefits of GIs on China rural development as well as the likely positive impacts of further GIs development. A systematic methodology will be set. It will establish a list of impacts which provide a clear link between GI development and its outcomes on rural communities including on the supply chain, the local development and the environment. For each potential impact, measurable indicator(s) will be identified
• To develop a comprehensive study of GIs impacts on rural development for 4 European and 4 Chinese GI’s, on the basis of the impacts and indicators selected
• To develop recommendations to support positive outcomes of GI development on rural development in China by using the conclusions from the cases studies