Their number has increased rapidly, though with considerable differences across provinces. Focusing on Northwest China, Garnevska et al. ( The high and rising stock of agricultural R&D as well as the increasing presence of foreign firms in the agriculture sector may improve China’s ability to absorb new foreign inventions (Andrews and Westmore, 2014). Foreign direct investment (FDI) is encouraged in most parts of the agricultural industry, although there are some restrictions. Changes to China’s foreign investment catalogue in 2007 raised restrictions on FDI in five agricultural industries including seed production and development, soybean processing and distribution services. In addition, an update in 2011 expanded restrictions to the areas of grain purchasing and the processing of rice, flour and edible oils.