Australian exporters hope growing rift with China will ease, eye opportunities in Chinese market

Despite the dwindling bilateral relationship between China and Australia, which has created a lot of uncertainty for Australian exporters, they expect rising tensions to ease as their commitment to the world’s second-largest economy continues.

Dozens of Australian companies are involved in various fields, including health care, skin care, food and alcohol, led by the Australian Trade and Investment Commission, and participated in the China International Consumer Products Exhibition (CICPE) in the capital Haikou. 7 to 10 May. Hainan Province, South China.

An obvious change seen by the Global Times during the mega expo was that Australian liquor or brand exporters declined faster than the wider presence at the China International Import Expo (CIIE) held in Shanghai last November.

Wine products from other foreign countries such as France, Spain, Italy and New Zealand appeared to dominate the exhibition, which diverted efforts to expand their presence in the Chinese market. Left alcohol in Australia, which has been under increasing pressure since November, initially had an anti-dumping rate of up to 212 percent announced by authorities in China.

In March, China started increasing the anti-dumping duty on alcohol in Australia from 116.2 percent to 218.4 percent. According to the decision, disposal and subsidies on imported liquor occurred in Australia, causing great harm to the Chinese liquor industry.

Luis Li, general manager of Xiamen, Fujian Province in East China, which focuses too much on sending Spanish and Chilean wines to the Chinese market, told the Global Times on Saturday that the former market share of foreign liquor shares in China changed dramatically Went. End of last year: With China’s wine declining in China, wine sales in France and Chile are rising, filling a rapid vacuum market.

Li said, “We have seen that there is a declining trend in the alcohol imported into the Chinese market from 2019 onwards, but the steady growth rate commenced with China’s consumption market returning to pre-viral levels from the beginning of this year.” Has occurred.” The current increase in consumption “changed” to release the demand that ended during the devastating virus in 2020.

According to the Wine Australia Industry Organization, Australian wine makers shipped $ 12 million ($ 9 million) worth of wine to China in the four months of December to March, 96 percent less than $ 325 million a year earlier.

China’s 3 billion contributes 39 percent to alcohol exports to Australia, which is higher than the combined value of the four major markets, the United States, the United Kingdom, Canada and New Zealand.

Ivy Yaw, the co-founder and co-founder of Australian e-commerce platform provider AU Life International, told the Global Times on Saturday that exports to China have fallen sharply by 90 per cent year-on-year this year.

“Our inventories and sales for China have increased with double-digit growth every year since 2015, when the Sino-Australia Free Trade Agreement was ended, leaving China’s tariffs zero for most of China. Australia, ”Yao said.

Facing a geopolitical conflict between the two countries, Yao said that China will not back down from the brink of consumption growth and reform.

Yao said the company is considering the issue of exporting grape juice to China and the original grape to a third country.

In addition, it has partnered with businesses in central China’s Hunan province to launch finished products with beef served with Australian grains. The latter enables delivery of Australian imported product to Chinese consumers based on taste.

“Unlike alcohol, our other products such as dairy and health products are not commercially affected,” he said.

Blackmores, an Australian healthcare manufacturer that entered China in 2012, sees the market as an important pillar of its growth strategy, with the company booking a 25 percent increase in revenue from the country in the second half. In 2020.

Kitty Liu, who manages Blackmore China, told Global Times in an interview during the expo that the current dynamics between the two countries is not a reason for us to change our business structure in China.

“The country has the greatest potential for improving consumption … In particular, Chinese consumers spend more on the health and nutrition sector in the post-viral period. Our focus today is on the long-term functioning of the market. He said, The company plans to partner with domestic medical universities in medical research on eye health.

The Champion Wool Factory – a wool company from Melbourne, Australia – has been growing steadily since 2018, when it previously participated in CIIE from zero to over 100 in Shanghai.

Its CEO Eric Dong told the Global Times on Saturday that audience enthusiasm for Australian-made wool products has outpaced its expectations for the Expo in Hainan.

“China-Australia trade relations will be very holistic. The current challenge will bring some uncertainty and concern, but I believe it is temporary,” Dong said.

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