Financial Times FT.com

Food and fuel needs compete in China

By Robin Kwong in Hong Kong

Published: June 20 2007 03:00 | Last updated: June 20 2007 03:00

Eight years ago, China's technocrats came up with an idea for what to do with the government's vast stockpile of corn reserves, a stockpile that was going stale.

The plan was to transform the corn into starch, sweeteners or ethanol, which could be blended with gasoline to run cars. The move would create valuable products and potentially reduce China's oil dependency.

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