Food security is another global issue. A drop in grain production in major producing countries and growing interests in biofuels led to higher grain prices and a tighter supply. The combined effect of the devalued U.S. dollar, soaring oil prices, the increased cost of grain production and international speculation sent agricultural futures prices skyrocketing in the first half of 2008, with rice and beans futures hitting their highest price in 20 and 34 years, respectively. The same thing happened to the price of wheat. Rising grain prices contributed to food shortages and social turmoil in states and regions all over the world. The falling price of oil brought grain prices down as well, but the international price of grain remains higher than before. Although China aims to meet over 95 percent of its grain needs through domestic production, it relies on imports to fill the gap, so grain security remains an important concern.

A new role for the armed forces

2008 was an important year for the modernization of the Chinese armed forces. The entire armed forces steadily improved troop training levels, stepped up the development of weaponry, deepened the transformation of national defense and the armed forces and enhanced overall operational capability. The Chinese military and armed police forces played a vital role in disaster relief after snowstorms and the Wenchuan earthquake; less than 10 hours after the tremor, 12,000 personnel had arrived in the disaster-hit areas. The armed forces also ensured security at the Olympic Games and Paralympic Games.

Last but not least, the Chinese armed forces continued to promote international cooperation in dealing with non-traditional security threats. First, China has taken an active part in UN peacekeeping operations. The Chinese military has participated in 18 UN peacekeeping operations, committing 11,063 military personnel. Among them, eight peacekeepers died in the line of duty. Currently, there are 1,952 Chinese peacekeepers on nine UN missions, more than any other permanent member of the UN Security Council. Second, China deepened international cooperation on counterterrorism. In 2008, Chinese armed forces staged joint military exercises with their counterparts in Thailand and India. In addition, the Shanghai Cooperation Organization has decided to hold a joint antiterrorism military exercise in 2010 in Kazakhstan. On December 26, 2008, the Chinese Government sent a naval flotilla to Somali waters to carry out escort missions, which not only protects Chinese ships from piracy, but also boosts international security cooperation.

The author is Chairman of the China Institute for International Strategic Studies and former Deputy Chief of the General Staff of the Chinese People's Liberation Army