Forestry industry figures are “delighted” at the resumption of trade with China, but timber processors say Australia should only export what cannot be used locally as the country faces a housing shortage.

Australian Forest Products Association chief executive Joel Fitzgibbon welcomed the announcement by China’s ambassador to Australia, Xiao Qian, on Thursday that the $1.6 billion annual trade in wood would resume after importers met a series of conditions of Chinese customs authorities, the latest sign of a thawing in relations with Beijing.