In recent years, more and more foreign capital enters our food industry, especially the bean oil industry. The international grain magnates have almost controlled our Soya oil industry from Soya importing to foreign capital entering into crushing industry. This paper elaborates the crisis status of the Soya oil industry. It also analyses the great effects on our Soya oil industry and grain economy security and the reasons through analysing 2004 soybean crisis, the GM soybean and the GM-Free soybean, and the strength of grain magnates. Finally this paper gives some macroeconomic and microeconomic advices and opinions on how to recapture the dominance in this industry and control our own grain industry, such as actively supporting the national soybean industry and increasing the subsidies for soybean crushing business and raising the import tariffs.
