Beijing flags lobster trade resumption, warns Australia over navy ship encounter

China gives its first hint of an end to a ban on Australia’s live lobsters, while warning against ‘making trouble’ after a recent naval incident.

Australia’s lobster trade with China was worth hundreds of millions of dollars when it was banned by Beijing. Picture: Getty Images

China has given the first confirmation Australia’s live lobster trade is poised to return, in news released after Beijing was widely condemned for the aggressive behaviour of its People’s Liberation Army sailors.

Beijing initially responded to the criticism by blaming the Australian navy for operating near China and claimed Canberra had lied about the brazen encounter, which took place in international waters close to Japan.

The Chinese government now seems to be trying to divert to more positive news, with a party state masthead releasing an “exclusive” story which said the highly profitably Australian live lobster trade will soon be allowed to resume.

“The resumption of Australian lobster imports is likely to happen soon, possibly by the end of this year, as relevant work is already in progress,” Fan Xubing, a director with the China Aquatic Products Processing and Marketing Alliance, told the Global Times.

“The restoration of Australian lobster imports will help stabilise market prices and offer consumers more choices,” he said.

The China Aquatic Products Processing and Marketing Alliance is an outfit affiliated with Beijing’s Ministry of Agriculture.

The Global Times was used to announce many of the unofficial bans on trade with Australia previously worth $20 billion a year, which were first imposed in 2020.

The comments are the first semi-official confirmation of an end of the unofficial ban, which The Australian revealed earlier in November was expected to be unwound after Mr Albanese’s trip to China.

A Chinese warship was recently accused of injuring Australian navy divers using sonar pulses. Picture: Getty Images

Sources in the lobster industry — which was worth $700 million a year before it was black-listed three years ago — told The Australian they remain in the dark about China’s plans.

Trade Minister Don Farrell met in person with his Chinese counterpart, Commerce Minister Wang Wentao, in San Francisco last week, days after an earlier meeting in Shanghai.

Senator Farrell urged Mr Wang to remove the lobster restriction in both meetings. Meanwhile, Australian officials in Beijing have made technical representations, following claims by Chinese customs — contested by the industry — that there had been elevated cadmium levels in Australian lobsters.

“The Australian Government continues to press for the resolution of impediments to live rock lobster trade through bilateral, multilateral and ministerial channels with China,” said a spokesman for the Department of Foreign Affairs and Trade.

“The Australian Government, including at the highest levels, has consistently advocated for the full resumption of unimpeded Australian exports to China. This includes the removal of remaining impediments on live rock lobster and some red meat establishments.”

The industry hopes the resumption can occur before Chinese lunar new year, which starts in February and is traditionally the time of highest demand for the trade.

Chinese lobster importers have complained that without Australia’s prized catch, the prices for all lobsters in China have skyrocketed and squeezed their margins.

“No one is making money on the China side,” an industry source told The Australian.

The trade news comes as criticism continues about China’s aggressive military behaviour, which has soured the recent modest improvement in the bilateral relationship.

The trade news comes as criticism continues about China’s aggressive military behaviour, which has soured the recent modest improvement in the bilateral relationship.

Australian Ambassador to the United States, Kevin Rudd, said the PLA’s use of sonar pulses in international waters was “outrageous”, noting it had taken place “when the Chinese have said that they are seeking to stabilise” their relationships with Australia, the United States and others.

“Remember this incident occurred within the Japanese exclusive zone. It is not exactly a piece of contested waterway somewhere nearer to the Chinese coast,” Dr Rudd told Sky News in an interview.

Beijing’s most authoritative English language newspaper, the China Daily, in a Thursday editorial said the reaction to the encounter demonstrated “mutual suspicions have run too deep” and continued to strain the country’s relationship with Australia.

The party state masthead said the Chinese military was “strictly disciplined and always operates professionally in accordance with international law” and blamed Canberra for the encounter which injured an Australian diver.

“The Australian side should stop making trouble in front of China’s doorstep and work with China to preserve the momentum of improving bilateral ties,” the China Daily said.

But in an apparent concession to Canberra’s position, the masthead said it was possible to have “divergent readings of some critical clauses” of the international laws that govern such military engagements.

“As has been the case in all the recent encounters between Chinese and foreign militaries in nearby areas, everyone seems to believe they were behaving in accordance with international law.”