Boom in exports to China

AUSTRALIA’S trade with China is booming, with exports rising $2.1 billion in the first five months of 2020 despite Beijing’s bluster and threats to turn off the tap.

Beef, sheep, fruit and nut exports have gone gangbusters, while wine sales to China rebounded in April and May after taking a hit from the country’s COVID-19 lockdown in January, Department of Foreign Affairs and Trade (DFAT) figures show.

Farmers say Chinese consumers are still hungry for premium Australian goods despite the political war of words between Beijing and Canberra.

That’s despite Chinese ambassador Cheng Jingye warning in April that Australia’s push for a COVID-19 inquiry could cause Chinese consumers to boycott their products.

“Maybe the ordinary people will say, ‘Why should we drink Australian wine? Eat Australian beef’?” he said.

Lifestock SA chief executive Andrew Curtis said all anecdotal evidence was that “Chinese consumers still want our product”.

“There might be a bit of discussion at higher levels of government but the consumers are still interested in what we have and they recognise that we are a reliable and quality supplier,” Mr Curtis said.

Fresh, frozen and chilled beef exports rose 26.9 per cent, or by $216 million, to be more than $1 billion for the fivemonth period, DFAT figures show.

That’s despite China suspending imports from four Australian abattoirs in May.

Australia exported four times as much fish to China from January to May as it did in the corresponding period in 2019, sheep meat exports were up 10 per cent, and cheese and curd exports up 14.5 per cent.

While Australia’s wine exports to China were down almost 13 per cent, DFAT figures show wine sales were rebounding by April and May.

Overall, Australian exports to China for the period increased from $57.2 billion in 2019 to $59.4 billion this year.

Federal Trade Minister Simon Birmingham has previously expressed frustration at China slapping an 80 per cent import tax on Australian barley in May.

It coincided with Australia’s calls for an inquiry into the COVID-19 outbreak, but Beijing denies the tariff hike was retaliation.

Senator Birmingham said the boost showed Australian produce “continues to have a strong reputation”.