Australia-China relations improved substantially on the back of the election victory of the Australian Labor government in May last year. A number of changes are in the air and speculation is mounting that our Trade Minister will be invited to visit China as soon as February. However, the surge in China’s Covid case numbers has been identified by our Treasurer as a key risk going forward.
Australia’s Department of Agriculture, Fisheries and Forestry (DAFF) has just issued Industry Advice Notice 2023-01: Horticulture – China removing COVID-19 testing for all imported products. (Dated 13 January 2023). Its purpose is to inform Australian manufacturers and exporters of food products that China’s General Administration of Customs (GACC) has removed COVID-19 testing for all imported products (including cold-chain products) from 08 January 2023.
The GACC announcement states that as a result of Covid being downgraded to Class B disease management, and it being no longer included in the quarantine infectious disease management, all measures such as nucleic acid monitoring and testing for novel coronavirus at the ports for imported cold chain foods and non-cold chain goods will be cancelled. (A copy of the announcement forms an attachment to DAFF’s notice).
While 2022 closed with a sense of cautious optimism about our relationship with China, 2023 kicks off with renewed expectations that it will bring significant change for Aussie exporters. At the height of a diplomatic rift in 2020, Beijing imposed a range of tariffs, bans and restrictions on Australian exports including wine, barley and lobsters, which are popular with Chinese consumers. A major shift occurred when Foreign Affairs minister Penny Wong met with China’s foreign minister Wang Yi before Christmas.
Wine
Last week China’s ambassador to Australia opened an extraordinary press conference in Canberra by toasting the Chinese-Australian relationship with a glass of 2017 Chateau Tanundra shiraz from the Barossa Valley. Mr Xiao also raised hopes that Australian exports of other products could soon move freely into China again.
Australian winemakers are making plans to head to China in 2023 with the ending of the Covid restrictions. Treasury Wine Estates chief executive Tim Ford said in a media interview that he was looking forward to reconnecting with the company’s staff and business partners this year, after not being able to travel to China for the past three years.
Coal
China also appears to have effectively ended its ban on accepting shipments of coal this week, amid reports customs officials have been directed to begin clearing shipments for import. According to a Wall Street Journal report, China’s national planning agency has allowed a group of state-owned companies to resume repurchasing Australian-origin coal, indicating that the ban has been lifted.
Meat
The CEO of the Australian Meat Industry Council, Patrick Hutchison, has said in a media interview that the industry is ready to engage with Chinese authorities to resume the full potential of an export trade that was once worth $4 billion per year – but is currently down to $2.9 billion. He says the meat industry is prepared to do whatever it takes to re-engage with Chinese authorities and get the trade back to full capacity.
All clients, whether importing or exporting, should be aware that the upcoming Chinese New Year holiday (21 to 27 January 2023) is expected to cause more disruptions than usual, as millions of workers move around the country in spite of the Covid numbers.
As licensed Customs Brokers and International Freight Forwarders, Colless Young offers you professional advice on all your international trade and shipping requirements. We provide a complete range of import and export logistics services, both air and sea cargo, including warehousing and trucking, at all major Australian ports and airports. Call us for updated shipping schedules and freight rates.
