China: export opportunities for food

ABSTRACT

The People's Republic of China has the largest population in the world, making it both one of the most fascinating and rapidly expanding import markets for food and beverages as well as one of the most difficult. The Chinese market is appealing to foreign food producers because of the country's high per capita income and quick urbanization. The Agriculture Chapter addressed fundamental trade barriers and will support a significant increase in the export of food, agricultural, and seafood products from the United States, boosting farm and fishery revenue, stimulating rural economies, and fostering employment growth. Numerous non-tariff barriers to the export of U.S. agricultural and seafood products are discussed, including those relating to rice, dairy, infant formula, horticulture products, animal feed and feed additives, pet food, and agricultural biotechnology products, as well as meat, chicken, and seafood. The U.S. has achieved significant export successes thus far, despite the pandemic. Decrees 248 and 249, which take effect on January 1, 2022, mandate that foreign suppliers of particular food products to China register with the GACC before presenting their goods for customs clearance. Several Global Agricultural Information Network (GAIN) reports on GACC Decrees 248 and 249 have been published by FAS offices in China. For the most recent information on whether their business has to register, whether it can self-register, or if it needs to be recommended for registration by a U.S. competent body, U.S. exporters should examine the GAIN system, which offers points of contact at the GACC. According to Euromonitor, urban Chinese customers who are short on time choose shopping near residential areas, especially in the wake of the COVID-19 outbreak. During the crisis, consumers grew accustomed to shopping in their immediate areas. As a result, many major modern grocery chains have used a multi-format strategy and constructed smaller-format stores. Freshippo, Yonghui, and Carrefour are all opening smaller, more neighborhood-focused stores that place an increased emphasis on fresh foods. Some of these shops also act as e-commerce order warehouses and offer prompt home deliveries. Particularly Yonghui has opened Yonghui Mini Stores quickly as an addition to its hypermarket and major supermarket operations. The food processing sector in China has been expanding steadily in recent years. According to the Chinese Ministry of Industry and Information Technology (MIIT), sales, production, and income in the sector rose in 2020. The total profits of China's largest food processing firms reached 620.66 billion yuan (about US$97 billion) in 2020, an increase of 6.8% over the same period in 2019. According to MIIT, these businesses' profit growth was 3.1% higher than the average for all industrial sectors.