In the effort to ease tensions with the Australian government, Beijing lifted a ban on three Australian abattoirs as China grapples with food shortages. The Australian companies allowed into China are Teys, the Australian Lamb Company, and JBS. In 2020, China had imposed bans on Australian exports such as wine, beef, barley, and lobster, estimated to cost Australian companies $20 billion. This led to democratic governments adopting “trade diversification” strategies to reduce reliance on the Chinese market and avoid pressure from the CCP.
Trade Minister Don Farrell sees the lifting of the beef ban as a positive step towards stabilizing ties with Beijing and will continue to press for the removal of remaining trade impediments. Beijing also lifted bans on other exports including barley, coal, cotton, copper ore, timber logs, stone fruit, and oaten hay. The Australian government is optimistic about trade relations with China following its mature approach to international relations. Beijing is also reviewing its ban on Australian wine exports while continuing to restrict seven other abattoirs from re-entering China.
China’s food shortages and struggles to feed itself stem from generations of communist and socialist control, resulting in poor profitability and appeal for farming as a business. In contrast, free-market systems in Western countries allow farmers to profit from their businesses, making farming more appealing for several generations.