Enhancing Sustainable Agriculture in China Through Capital Investment, Environmental Balance, and Natural Resource Productivity

ABSTRACT Rapid population increase and resource scarcity require a sustainable agricultural system that will provide for productivity, environmental sustainability, and farmers' livelihoods. Despite the productivity of modern agricultural methods, they have led to soil degradation, ecological imbalance, and regional differences. This study analyzes the association between initial capital investment, sustainable agricultural practices, environmental sustainability, natural resource productivity, and regional economic development. A mixed‐methods design was used, in which quantitative data were collected through purposive sampling of 668 respondents (332 agricultural researchers and 336 Chinese farmers), while semi‐structured qualitative interviews were also conducted with 72 participants. Quantitative data analysis was performed using SPSS for descriptive screening, SmartPLS for PLS‐SEM measurement, and AMOS for confirmatory factor analysis and structural equation modeling. Qualitative analysis was done using NVivo. Results revealed a considerable indirect relationship between initial capital investment and improved natural resources due to productivity ( B = 0.057, p < 0.001). Sustainable agriculture is positively associated with environmental and ecological balance ( B = 0.289, p < 0.001) and enhanced natural resource conservation ( B = 0.173, p = 0.002). Enhancement of agricultural tools and resources was positively associated with sustainable agriculture ( B = 0.355, p < 0.001). Simultaneously, sustainable agriculture was also positively associated with regional economic development ( B = 0.260, p < 0.001). This study provides empirical evidence for a framework linking capital investment, sustainability, and socio‐economic outcomes. These findings offer crucial guidance for policymakers and practitioners seeking to promote agricultural development with environmental resilience and economic inclusivity.