Lobster trade benefits China-Australia ties

Merchants at Sydney Fish Market sell lobsters on Wednesday, with Chinese decorations celebrating the Spring Festival adorning the venue. (XIN XIN/CHINA DAILY)

The resumption of lobster trade between China and Australia will not only further promote economic and trade ties between the two countries but will also contribute positively to both regional and global economies, said government officials and experts.

"Australian rock lobster is of high quality and is loved by consumers from all over the world," said Chinese Ambassador to Australia Xiao Qian in an exclusive interview with China Daily.

Xiao said lobster is an important export-oriented agricultural product of Australia, employing many Australians.

Amid factors such as the sluggish global economic recovery, the lobster fishery is facing great pressure in production and management.

With China's huge consumer market and strong demand, Australia attaches great importance to lobster exports to the country.

The export of lobsters from Australia to China resumed in December, when China restarted its port inspection and quarantine of relevant products.

Xiao said this is an important booster for China-Australia relations and practical cooperation.

It will bring more high-quality products at low prices to Chinese consumers, and will also create more jobs and economic benefits for the Australian lobster industry, benefiting the people of both countries, Xiao added.

"One of the things my government is very proud of … is repairing the relationship with China. Since Christmas Day, 565,000 kilograms of lobster have landed in China, with 760 individual consignments," Australian Prime Minister Anthony Albanese told the Australian media on Jan 10.

Last October, Albanese met Chinese Premier Li Qiang during the East Asia Cooperation leaders' meetings in Vientiane, Laos. After the meeting, the Australian government announced it had agreed on a timetable with China for the full resumption of Australian live rock lobster exports by the end of the year.

This will protect the jobs of 3,000 Australians employed in the industry, mostly in Western Australia. In 2019, China's market was worth over AU$700 million ($442.6 million), according to information released by the Australian government.

Since December, Freshippo, a Chinese grocery and fresh goods retail chain under Alibaba Group, has also reinstated the supply of related goods.

According to Kun Yi, the procurement manager of Freshippo fresh products department, Australian lobsters at Freshippo are currently selling like hotcakes, with monthly sales increasing by 2-3 times compared to the same period in the past.

Australian rock lobster has long been prized in China for its quality, taste and sustainability credentials. The resumption of trade will see this premium product once again available to Chinese consumers, while supporting thousands of jobs in Australia's coastal communities, according to a media statement from Seafood Industry Australia, the national body representing the Australian seafood industry.

Pivotal moment

This critical achievement demonstrates that Australia-China trade relations are progressing positively, creating value and benefits for all involved, observers said.

Vaughn Barber, chair of the China-Australia Chamber of Commerce, said this is a pivotal moment for the Australian fisheries sector and broader bilateral trade relations.

Australian lobster exporters, such as Orient Fisheries Australia, will benefit from renewed access to China's vast market, boosting revenue and creating jobs in the fisheries industry, he said.

"By reopening trade in this key area, Australia could see increased opportunities for its agricultural and seafood exports, reinforcing its reputation as a high-quality producer," Barber added.

In addition to lobsters, Australian products such as wine and beef have also returned to the Chinese market.

Xiao noted that over 90 percent of Australia's iron ore exports are destined for China, providing crucial support for related industries. Meanwhile, Chinese electric vehicles are well-received by Australian consumers, injecting new momentum into Australia's energy transition.

"We are looking forward to deeper integration between Chinese-style modernization and future Australian manufacturing," Xiao said.

He added that China looked forward to strengthening cooperation in traditional areas such as energy, mining, and agriculture, and further expanding cooperation in emerging areas such as green development, the digital economy, scientific and technological innovation, and the health industry.

China is Australia's largest trading partner. The economies of the two countries are highly complementary and there is great potential for future cooperation.

There is both strong economic reasoning and institutional support for sustained growth in trade between the two countries, said Warwick Powell, an adjunct professor at Queensland University of Technology.

"Chinese enterprises and consumers hold Australian products in high regard," Powell said.

There is a free-trade agreement between China and Australia, and both are also members of the Regional Comprehensive Economic Partnership, Powell noted.

"Mutual confidence in the relevance of multilateral trade institutions like the WTO is also critical," he said.