This paper reviews the evolution of EU common agricultural policy and compares them with the history of China's agricultural subsidy and price support policy. It is pointed out that the reform process of common agricultural policy and the dilemma of China's agricultural subsidy policy are related to the long-term fluctuations of international grain price. China's current problem just reproduces the dilemma of the common agricultural policy in the 1980s. China's agricultural subsidy policy reform should learn from the experience and lessons of the common agricultural policy reform. In addition to maintaining an appropriate amount of grain inventory to ensure grain security, we must gradually introduce market mechanism according to the rhythm of long-term fluctuations of international grain price, reduce price support that distorts production, and increase direct subsidy to farmers.
