Overseas Market Introduction Service

for

Sea Fish Industry Authority

Produced by

Edwin Qiao

China-Britain Business Council (CBBC) Guangzhou

Office

Date of document 24th November 2015

2

CONTENTS

1 SUMMARY OF THE ENQUIRY 3

11 Introduction 3

12 Objectives 3

13 Research Methods 3

2 EXECUTIVE SUMMARY 4

3 MATCHING PROFILE 6

31 Chinarsquos Trade Environment 6

33 Aquatic Consumption 19

34 Overview of High End Seafood Consumption 21

35 Export Opportunities 24

4 DOING BUSINESS IN CHINA 31

41 The Supply Structure 31

42 The Direct Retail Channel 36

43 The Food Service Channel 39

44 E-Commerce Channel 42

45 Shanghai Free Trade Zone 44

46 Key Regulations and Tariffs 46

47 Tips and Useful Links 52

48 Seafood Distributors in China 55

5 CBBC RECOMMENDATIONS AND NEXT STEPS 58

The OMIS is provided by the Commercial Departments of Diplomatic Service Posts overseas as part of the joint trade development operation UK Trade amp Investment (ldquoUKTIrdquo) of the Foreign and Commonwealth Office (the FCO) and the Department for Business Innovation and Skills (ldquoBISrdquo) In China UKTI has commissioned the China-Britain Business Council (ldquoCBBC) to provide certain

OMIS work on its behalf Whereas every effort has been made to ensure that information provided through OMIS is accurate these Commercial Departments UKTI the FCO BIS and CBBC accept no liability for any errors omissions or misleading statements in such information and accept no responsibility as to the standing of any firm company or individual mentioned Any party interested in the goods or services provided by any company referred to in OMIS material should undertake their own research and due diligence and should not consider a reference in OMIS material to be an endorsement of any goods services or companies mentioned

3

1 SUMMARY OF THE ENQUIRY 11 Introduction

CBBC understands that the Sea Fish Industry Authority (Seafish) is a Non-

Departmental Public Body (ldquoNDPBrdquo) commissioned to improve and raise

standards across the seafood industry in the UK

Seafish commissioned CBBCrsquos OMIS services in 2013 to produce a market report

which SIA used to inform the industries mentioned above of the Chinese seafood

market CBBCrsquos research included a list of seafood importers market entry

routes procedures and import regulations in China

Seafish sought CBBC to support it by updating the original market report

complied in 2013 The new report should include updated information on the

seafood industry and detail policies and regulations

12 Objectives

In order to meet Seafishrsquos objectives CBBC will

Update the findings in the previous report this has been discussed by

CBBC and Seafish in various email exchanges

Research on new areas will include

o A general introduction to e-commerce sales platforms in China

o The Shanghai-Pilot Free Trade Zone (FTZ) and other pilot free trade

zones in China are changing the import landscape in China CBBCrsquos

research may include general introduction to FTZs seafood

importation in FTZs seafood sales in FTZs and relevant polices in

FTZs

o Updates on sea ports importing seafood in China

o Overview of high-end seafood consumption

o Introductions to new polices especially the revised version of the Food

Safety Law of the People Republic of China which was introduced on

1st October 2015

CBBC aimed to provide as much information as possibly available through the

public domain However please note that some market intelligence may not be

publically available

13 Research Methods

CBBC used a variety of primary and secondary sources to gather information for

this report Research was conducted primarily through desk research including

CBBCrsquos internal database of member companies and business directories as well

as telephone calls to industry experts

4

2 EXECUTIVE SUMMARY

This Executive Summary summarises CBBCrsquos research findings

China imported USD 720 billion worth of agricultural products in 2014 while China imported USD 91 billion worth of aquatic products 1

China is a net exporter of aquatic products however imports are increasing and

are expected to continue increasing albeit at slower growth rates Section 32 of

this report provides an overview of Chinarsquos seafood sector the research covers

Chinarsquos aquatic output including wild catch production and aquaculture as well as

imports in 2013 and 2014 and the first quarter of 2015

Section 32 also provides an overview of aquatic product safety concerns in China

and the steps the Chinese government has introduced to improve the supervision

of imported seafood

At present the Ministry of Agriculture is developing the 13th Five Year Plan (2016-

2020) which will provide a blueprint for the development of the fishery industry

in China Limited information on what the plan will cover is currently available

CBBC can provide Seafish with an overview of the plan when it has been

published

Section 34 provides an overview of high end seafood consumption in China

CBBC has information on selected high end seafood imported to China from 2012-

September 2015 For example China imported over 19900 tonnes of frozen crab

worth USD 1604 million in 2014 In the first nine months of 2015 frozen crab

imports reached over 17400 tonnes worth USD 1419 million

Section 35 also includes an overview of the UKrsquos exports of high end seafood

products to China from 2012-September 2015 The UKrsquos exports of frozen crab

reached 410 tonnes and was worth USD 23 million in 2014 In the first nine

months of 2015 the UK has exported 573 tonnes of frozen crab to China worth

USD 32 million

Section 4 provides an of the supply structure in China for seafood products

In 2014 China authorised various ports to import and export seafood CBBC has

provided a list of these reports and other key ports in Section 41

Section 42 includes an overview of Chinarsquos direct retail channel and promotions

retailers and e-commerce platforms that have undertaken to promote imported

seafood in China

Section 43 provides an overview of the food service channel in China which

includes a brief overview of the hotel and restaurant fast food and institutional

foodservice sectors in China

Chinarsquos e-commerce market is rapidly developing and exports of UK products

should consider e-commerce platforms as well as traditional retail channels to sell

their products CBBC has therefore provided an overview of Chinarsquos e-commerce

market in Section 44 and has provided brief outlines of leading e-commerce

1 httpwwwaqsiqgovcnxxgk_13386xxgkztfltzdtgzdt201502t20150215_432840htm

2

CONTENTS

1 SUMMARY OF THE ENQUIRY 3

11 Introduction 3

12 Objectives 3

13 Research Methods 3

2 EXECUTIVE SUMMARY 4

3 MATCHING PROFILE 6

31 Chinarsquos Trade Environment 6

33 Aquatic Consumption 19

34 Overview of High End Seafood Consumption 21

35 Export Opportunities 24

4 DOING BUSINESS IN CHINA 31

41 The Supply Structure 31

42 The Direct Retail Channel 36

43 The Food Service Channel 39

44 E-Commerce Channel 42

45 Shanghai Free Trade Zone 44

46 Key Regulations and Tariffs 46

47 Tips and Useful Links 52

48 Seafood Distributors in China 55

5 CBBC RECOMMENDATIONS AND NEXT STEPS 58

The OMIS is provided by the Commercial Departments of Diplomatic Service Posts overseas as part of the joint trade development operation UK Trade amp Investment (ldquoUKTIrdquo) of the Foreign and Commonwealth Office (the FCO) and the Department for Business Innovation and Skills (ldquoBISrdquo) In China UKTI has commissioned the China-Britain Business Council (ldquoCBBC) to provide certain

OMIS work on its behalf Whereas every effort has been made to ensure that information provided through OMIS is accurate these Commercial Departments UKTI the FCO BIS and CBBC accept no liability for any errors omissions or misleading statements in such information and accept no responsibility as to the standing of any firm company or individual mentioned Any party interested in the goods or services provided by any company referred to in OMIS material should undertake their own research and due diligence and should not consider a reference in OMIS material to be an endorsement of any goods services or companies mentioned

3

1 SUMMARY OF THE ENQUIRY 11 Introduction

CBBC understands that the Sea Fish Industry Authority (Seafish) is a Non-

Departmental Public Body (ldquoNDPBrdquo) commissioned to improve and raise

standards across the seafood industry in the UK

Seafish commissioned CBBCrsquos OMIS services in 2013 to produce a market report

which SIA used to inform the industries mentioned above of the Chinese seafood

market CBBCrsquos research included a list of seafood importers market entry

routes procedures and import regulations in China

Seafish sought CBBC to support it by updating the original market report

complied in 2013 The new report should include updated information on the

seafood industry and detail policies and regulations

12 Objectives

In order to meet Seafishrsquos objectives CBBC will

Update the findings in the previous report this has been discussed by

CBBC and Seafish in various email exchanges

Research on new areas will include

o A general introduction to e-commerce sales platforms in China

o The Shanghai-Pilot Free Trade Zone (FTZ) and other pilot free trade

zones in China are changing the import landscape in China CBBCrsquos

research may include general introduction to FTZs seafood

importation in FTZs seafood sales in FTZs and relevant polices in

FTZs

o Updates on sea ports importing seafood in China

o Overview of high-end seafood consumption

o Introductions to new polices especially the revised version of the Food

Safety Law of the People Republic of China which was introduced on

1st October 2015

CBBC aimed to provide as much information as possibly available through the

public domain However please note that some market intelligence may not be

publically available

13 Research Methods

CBBC used a variety of primary and secondary sources to gather information for

this report Research was conducted primarily through desk research including

CBBCrsquos internal database of member companies and business directories as well

as telephone calls to industry experts

4

2 EXECUTIVE SUMMARY

This Executive Summary summarises CBBCrsquos research findings

China imported USD 720 billion worth of agricultural products in 2014 while China imported USD 91 billion worth of aquatic products 1

China is a net exporter of aquatic products however imports are increasing and

are expected to continue increasing albeit at slower growth rates Section 32 of

this report provides an overview of Chinarsquos seafood sector the research covers

Chinarsquos aquatic output including wild catch production and aquaculture as well as

imports in 2013 and 2014 and the first quarter of 2015

Section 32 also provides an overview of aquatic product safety concerns in China

and the steps the Chinese government has introduced to improve the supervision

of imported seafood

At present the Ministry of Agriculture is developing the 13th Five Year Plan (2016-

2020) which will provide a blueprint for the development of the fishery industry

in China Limited information on what the plan will cover is currently available

CBBC can provide Seafish with an overview of the plan when it has been

published

Section 34 provides an overview of high end seafood consumption in China

CBBC has information on selected high end seafood imported to China from 2012-

September 2015 For example China imported over 19900 tonnes of frozen crab

worth USD 1604 million in 2014 In the first nine months of 2015 frozen crab

imports reached over 17400 tonnes worth USD 1419 million

Section 35 also includes an overview of the UKrsquos exports of high end seafood

products to China from 2012-September 2015 The UKrsquos exports of frozen crab

reached 410 tonnes and was worth USD 23 million in 2014 In the first nine

months of 2015 the UK has exported 573 tonnes of frozen crab to China worth

USD 32 million

Section 4 provides an of the supply structure in China for seafood products

In 2014 China authorised various ports to import and export seafood CBBC has

provided a list of these reports and other key ports in Section 41

Section 42 includes an overview of Chinarsquos direct retail channel and promotions

retailers and e-commerce platforms that have undertaken to promote imported

seafood in China

Section 43 provides an overview of the food service channel in China which

includes a brief overview of the hotel and restaurant fast food and institutional

foodservice sectors in China

Chinarsquos e-commerce market is rapidly developing and exports of UK products

should consider e-commerce platforms as well as traditional retail channels to sell

their products CBBC has therefore provided an overview of Chinarsquos e-commerce

market in Section 44 and has provided brief outlines of leading e-commerce

1 httpwwwaqsiqgovcnxxgk_13386xxgkztfltzdtgzdt201502t20150215_432840htm

3

1 SUMMARY OF THE ENQUIRY 11 Introduction

CBBC understands that the Sea Fish Industry Authority (Seafish) is a Non-

Departmental Public Body (ldquoNDPBrdquo) commissioned to improve and raise

standards across the seafood industry in the UK

Seafish commissioned CBBCrsquos OMIS services in 2013 to produce a market report

which SIA used to inform the industries mentioned above of the Chinese seafood

market CBBCrsquos research included a list of seafood importers market entry

routes procedures and import regulations in China

Seafish sought CBBC to support it by updating the original market report

complied in 2013 The new report should include updated information on the

seafood industry and detail policies and regulations

12 Objectives

In order to meet Seafishrsquos objectives CBBC will

Update the findings in the previous report this has been discussed by

CBBC and Seafish in various email exchanges

Research on new areas will include

o A general introduction to e-commerce sales platforms in China

o The Shanghai-Pilot Free Trade Zone (FTZ) and other pilot free trade

zones in China are changing the import landscape in China CBBCrsquos

research may include general introduction to FTZs seafood

importation in FTZs seafood sales in FTZs and relevant polices in

FTZs

o Updates on sea ports importing seafood in China

o Overview of high-end seafood consumption

o Introductions to new polices especially the revised version of the Food

Safety Law of the People Republic of China which was introduced on

1st October 2015

CBBC aimed to provide as much information as possibly available through the

public domain However please note that some market intelligence may not be

publically available

13 Research Methods

CBBC used a variety of primary and secondary sources to gather information for

this report Research was conducted primarily through desk research including

CBBCrsquos internal database of member companies and business directories as well

as telephone calls to industry experts

4

2 EXECUTIVE SUMMARY

This Executive Summary summarises CBBCrsquos research findings

China imported USD 720 billion worth of agricultural products in 2014 while China imported USD 91 billion worth of aquatic products 1

China is a net exporter of aquatic products however imports are increasing and

are expected to continue increasing albeit at slower growth rates Section 32 of

this report provides an overview of Chinarsquos seafood sector the research covers

Chinarsquos aquatic output including wild catch production and aquaculture as well as

imports in 2013 and 2014 and the first quarter of 2015

Section 32 also provides an overview of aquatic product safety concerns in China

and the steps the Chinese government has introduced to improve the supervision

of imported seafood

At present the Ministry of Agriculture is developing the 13th Five Year Plan (2016-

2020) which will provide a blueprint for the development of the fishery industry

in China Limited information on what the plan will cover is currently available

CBBC can provide Seafish with an overview of the plan when it has been

published

Section 34 provides an overview of high end seafood consumption in China

CBBC has information on selected high end seafood imported to China from 2012-

September 2015 For example China imported over 19900 tonnes of frozen crab

worth USD 1604 million in 2014 In the first nine months of 2015 frozen crab

imports reached over 17400 tonnes worth USD 1419 million

Section 35 also includes an overview of the UKrsquos exports of high end seafood

products to China from 2012-September 2015 The UKrsquos exports of frozen crab

reached 410 tonnes and was worth USD 23 million in 2014 In the first nine

months of 2015 the UK has exported 573 tonnes of frozen crab to China worth

USD 32 million

Section 4 provides an of the supply structure in China for seafood products

In 2014 China authorised various ports to import and export seafood CBBC has

provided a list of these reports and other key ports in Section 41

Section 42 includes an overview of Chinarsquos direct retail channel and promotions

retailers and e-commerce platforms that have undertaken to promote imported

seafood in China

Section 43 provides an overview of the food service channel in China which

includes a brief overview of the hotel and restaurant fast food and institutional

foodservice sectors in China

Chinarsquos e-commerce market is rapidly developing and exports of UK products

should consider e-commerce platforms as well as traditional retail channels to sell

their products CBBC has therefore provided an overview of Chinarsquos e-commerce

market in Section 44 and has provided brief outlines of leading e-commerce

1 httpwwwaqsiqgovcnxxgk_13386xxgkztfltzdtgzdt201502t20150215_432840htm

4

2 EXECUTIVE SUMMARY

This Executive Summary summarises CBBCrsquos research findings

China imported USD 720 billion worth of agricultural products in 2014 while China imported USD 91 billion worth of aquatic products 1

China is a net exporter of aquatic products however imports are increasing and

are expected to continue increasing albeit at slower growth rates Section 32 of

this report provides an overview of Chinarsquos seafood sector the research covers

Chinarsquos aquatic output including wild catch production and aquaculture as well as

imports in 2013 and 2014 and the first quarter of 2015

Section 32 also provides an overview of aquatic product safety concerns in China

and the steps the Chinese government has introduced to improve the supervision

of imported seafood

At present the Ministry of Agriculture is developing the 13th Five Year Plan (2016-

2020) which will provide a blueprint for the development of the fishery industry

in China Limited information on what the plan will cover is currently available

CBBC can provide Seafish with an overview of the plan when it has been

published

Section 34 provides an overview of high end seafood consumption in China

CBBC has information on selected high end seafood imported to China from 2012-

September 2015 For example China imported over 19900 tonnes of frozen crab

worth USD 1604 million in 2014 In the first nine months of 2015 frozen crab

imports reached over 17400 tonnes worth USD 1419 million

Section 35 also includes an overview of the UKrsquos exports of high end seafood

products to China from 2012-September 2015 The UKrsquos exports of frozen crab

reached 410 tonnes and was worth USD 23 million in 2014 In the first nine

months of 2015 the UK has exported 573 tonnes of frozen crab to China worth

USD 32 million

Section 4 provides an of the supply structure in China for seafood products

In 2014 China authorised various ports to import and export seafood CBBC has

provided a list of these reports and other key ports in Section 41

Section 42 includes an overview of Chinarsquos direct retail channel and promotions

retailers and e-commerce platforms that have undertaken to promote imported

seafood in China

Section 43 provides an overview of the food service channel in China which

includes a brief overview of the hotel and restaurant fast food and institutional

foodservice sectors in China

Chinarsquos e-commerce market is rapidly developing and exports of UK products

should consider e-commerce platforms as well as traditional retail channels to sell

their products CBBC has therefore provided an overview of Chinarsquos e-commerce

market in Section 44 and has provided brief outlines of leading e-commerce

1 httpwwwaqsiqgovcnxxgk_13386xxgkztfltzdtgzdt201502t20150215_432840htm

5

platforms in China CBBC also found a number of high-end seafood products

available on e-commerce platforms

The China-Shanghai Free Trade Zone (Shanghai FTZ) is also changing the way e-

commerce and retailers conduct business in China Section 45 provides a

summary of seafood sales in the Shanghai FTZ as well as an overviews of leading

e-commerce platforms and a retailer that have set up in the Shanghai FTZ

Section 46 includes a brief introduction to the registration and certification

requirements to export UK seafood to China as well as the documentation

required and labelling requirements in China

On 1st October 2015 China introduced a new Food Safety Law CBBC has outlined

some of the implications for exports to China in Section 46

CBBC has also provided useful tips and a list of leading trade organisations

relevant trade shows and imports of seafood in Section 47 and 48

Finally CBBC has provided recommendations for UK exports of seafood to China

in Section 5

Before entering the Chinese market CBBC strongly advises that companies take

steps to protect their Intellectual Property (IP) in China Furthermore before UK

companies commits significant financial resources to developing cooperation with

a local partner CBBC recommends that UK companies should conduct adequate

due diligence All UK companies should ensure they are familiar with their

obligations under the UK Bribery Act The UK Government is committed to

implementing the UN Guiding Principles on Business and Human Rights which set

out the responsibility of business to respect human rights CBBC advises all

companies to familiarise themselves with the UKrsquos National Action Plan which

implements the UNGPs for the UK and sets out expectations for business

behaviour both in the UK and overseas CBBC would be pleased to discuss the

National Action Plan and how it might apply to China with UK companies if

required

6

3 MATCHING PROFILE

31 Chinarsquos Trade Environment

Table 1 China Quick Facts

Quick China Facts

Population 136 billion as of 20142

Land area 96 million square km2

Number of households 4177226983 as of 2010 census

Urbanisation Rate 556 of total population (2015)

Capital Beijing

Other main cities Shanghai Tianjin Chongqing

Guangzhou Shenzhen Nanjing Wuhan Chengdu Shenyang Xirsquoan4

Languages Mandarin Cantonese

Religions Taoist Buddhist Christian Muslim

Currency RMB

Exchange rate RMB 100=GBP 1025

Total GDP (2014) RMB 636 trillion6

Real GDP growth rate (2014) 737

GDP per capita (2014) RMB 466298

Inflation (2014) 209

Official unemployment (2014) 4110

International status Worldrsquos second largest economy developing country WTO member11

Government type Communist State

Total food and drink import (2014) USD 4824 billion12

Top three import countriesregions

(food and drink)

European Union (EU) Association of

Southeast Asian Nations (ASEAN) New Zealand13

Disposable Income per capita (2014) RMB 2016714

2 httpdataworldbankorgcountrychina

3 httpwwwstatsgovcntjsjpcsjrkpc6rpindexchhtm

4 httpwww360doccomcontent1409161318854678_409887235shtml

5httpfinanceyahoocomechartss=GBPCNY=Xampt=5dampl=onampz=mampq=lampc=Stackingtrue

(Accessed 19nd November 2015) RMB 100 = USD 156 6 httpdatastatsgovcnsearchhtms=国内生产总值

7 httpdatastatsgovcneasyqueryhtmcn=C01 (国内经济核算-国内生产总值指数）

8 httpdatastatsgovcneasyqueryhtmcn=C01

9 httpdatastatsgovcneasyqueryhtmcn=C01 （价格指数-各种价格指数）

10 httpdatastatsgovcnsearchhtms=失业率

11 httpnewschinacomcn2015lianghui2015-0311content_35016557htm

12 httpwwwgovcnxinwen2015-0407content_2843526htm

13 httpwwwchinanewscomcj201504-077189667shtml

14 httpbusinesssohucom20150226n409167902shtml

6

3 MATCHING PROFILE

31 Chinarsquos Trade Environment

Table 1 China Quick Facts

Quick China Facts

Population 136 billion as of 20142

Land area 96 million square km2

Number of households 4177226983 as of 2010 census

Urbanisation Rate 556 of total population (2015)

Capital Beijing

Other main cities Shanghai Tianjin Chongqing

Guangzhou Shenzhen Nanjing Wuhan Chengdu Shenyang Xirsquoan4

Languages Mandarin Cantonese

Religions Taoist Buddhist Christian Muslim

Currency RMB

Exchange rate RMB 100=GBP 1025

Total GDP (2014) RMB 636 trillion6

Real GDP growth rate (2014) 737

GDP per capita (2014) RMB 466298

Inflation (2014) 209

Official unemployment (2014) 4110

International status Worldrsquos second largest economy developing country WTO member11

Government type Communist State

Total food and drink import (2014) USD 4824 billion12

Top three import countriesregions

(food and drink)

European Union (EU) Association of

Southeast Asian Nations (ASEAN) New Zealand13

Disposable Income per capita (2014) RMB 2016714

2 httpdataworldbankorgcountrychina

3 httpwwwstatsgovcntjsjpcsjrkpc6rpindexchhtm

4 httpwww360doccomcontent1409161318854678_409887235shtml

5httpfinanceyahoocomechartss=GBPCNY=Xampt=5dampl=onampz=mampq=lampc=Stackingtrue

(Accessed 19nd November 2015) RMB 100 = USD 156 6 httpdatastatsgovcnsearchhtms=国内生产总值

7 httpdatastatsgovcneasyqueryhtmcn=C01 (国内经济核算-国内生产总值指数）

8 httpdatastatsgovcneasyqueryhtmcn=C01

9 httpdatastatsgovcneasyqueryhtmcn=C01 （价格指数-各种价格指数）

10 httpdatastatsgovcnsearchhtms=失业率

11 httpnewschinacomcn2015lianghui2015-0311content_35016557htm

12 httpwwwgovcnxinwen2015-0407content_2843526htm

13 httpwwwchinanewscomcj201504-077189667shtml

14 httpbusinesssohucom20150226n409167902shtml

7

Chinarsquos GDP in 2014 was approximately RMB 636 trillion

Chinarsquos total value of imports and exports in 2014 reached RMB

264 trillion a year on year increase of 23

Chinarsquos total value of exports in 2014 reached RMB 144 trillion a

year on year increase of 49

Chinarsquos total value of imports in 2014 was RMB 120 trillion a year on year decrease 06

Chinarsquos trade surplus for 2014 was RMB 23 trillion a year on year

increase of 45915

Chinarsquos economy while slowing presents opportunities for UK companies Chinarsquos

slowdown in growth is expected to continue in the coming years as its market

matures The economy is compounded due to several factors including a

weakness in consumer sentiment and government clampdowns on extravagant purchases 16

Rapid urbanisation raising incomes urban living better education and greater life expectancy rates are changing Chinarsquos demographics 17

Chinarsquos middle class whose size differs according to different research

methodologies ranges from 105 million people and above and is expected to

grow further in the coming decades Chinarsquos middle consumers will create a

stronger consumer base for high-end goods such as non-local seafood as middle class consumers will have greater disposable incomes 18 19

According to the National Bureau of Statistics in 2014 urban disposable income

per capita reached RMB 28844 while rural disposable income per capita was

RMB 10489 Urban consumers earn considerable more than rural consumers and

therefore have greater annual consumption expenditure per capita in 2014 urban

annual consumption expenditure per capita was RMB 14491 and rural annual

consumption expenditure per capita was RMB 9892

Chinarsquos total import and export value of agricultural products in 2014 reached USD 1945 billion 20 a year on year increase of 42 according to statistics

published by the Ministry of Agriculture (MOA)

The total value of agricultural products exports in 2014 reached USD 720

billion a year on year an increase of 61

The total value of agricultural products imports reached USD 1225 billion

a year on year increase of 31

15 httpwwwchinanewscomgn201501-136962617shtml

16 httpwwwpwccncomwebmediadoc635593364676310538_rc_outlook_201516pdf

17 httpwwwmckinseycominsightsasia-pacificmeet_the_chinese_consumer_of_2020

18 httpdata163com15101607B61GHO8S00014MTNhtml

19 httpeditioncnncom20141023businesschina-middle-class-jeff-waltersindexhtml

20 httpwwwaqsiqgovcnxxgk_13386xxgkztfltzdtgzdt201502t20150215_432840htm

8

Aquatic product exports reached USD 217 billion a year on year increase

of 63

Aquatic product imports reached USD 91 billion a year on year increase

of 76

China is a net exporter of food fish and consumes 34 of global fish supply

according to the Food and Agriculture Organization of the United Nations (FAO)21

China is a net exporter of aquatic products imports increased in 2014 and are

expected to continue increasing in the next nine years China needs to import

large quantities of seafood to meet Chinese consumer demands Various types of

seafood can be exported into the Chinese market including salmon pelagic fish

white fish and shellfish

21 httpwwwfaoorgdocrep019i3640ei3640epdf

9

32 The Seafood Sector

Total aquatic output in 2013 was 617 million tonnes22

which accounted for

nearly 40 of the worldrsquos total for the year Chinarsquos aquaculture industry is

larger than its aquatic catch industry in 2013 Chinarsquos aquaculture market

produced 454 million tonnes 653 of the worldrsquos total aquaculture output23

China imported 41 million tonnes24 of aquatic products in 2013 while it exported

81 million tonnes25 of aquatic products

In 2014 the gross output value of Chinarsquos fishing industry totalled RMB 21

trillion while output of aquatic products totalled 646 million tonnes a year on

year increase of 47 aquaculture output reached 475 million tonnes a year on year increase of 46 26

Freshwater culture makes up more than 60 of Chinarsquos aquaculture output In

2014 freshwater cultured output reached 29357 kilotonnes (kt) accounting for

618 of production while mariculture out was 18126 kt or 382 of total

output

Fish was the primary variety of output for freshwater culture in 2014 while

shellfish saw the highest output in the maricutlure sector

The total value of aquatic trade in China in 2014 was USD 30884 billion a year

on year increase of 6827

In the first quarter of 2015 (January to March) China imported 904100 tonnes of

aquatic products worth USD 19 billion a year on year increase of 197 and 110 respectively28 A further 933000 tonnes of aquatic products was exported

at a value of USD 46 billion Fish meal imports decreased in the first three

months of 2015 to the lowest levels in five years due to the high prices

Of the top eight exporters of seafood to China in the first three months of 2015

Russia exported 30690029 tonnes of aquatic products to China during this period

Peru saw significant declines down by 624 year on year to 76000 tonnes

while ASEAN the US Chile Norway Canada and New Zealand also saw a decline

Norwayrsquos exports of seafood products to China have been effected since Wei Wei

was awarded the Nobel Peace Prize For Literature

22 Tonne = 1000kgs 23 httpnychinairncomnews20141023141608632shtml 24 httpwwwchyxxcomindustry201402230020html 25 httpwwwchyxxcomindustry201402230020html

26 httpwwwagricnV20SCjjps201505t20150520_4605796htm 27 httpwwwmoagovcnztzlnybrlrlxx201502t20150213_4408806htm 28 httpwwwmoagovcnztzlnybrlrlxx201505t20150527_4618039htm 29 httpwwwmoagovcnztzlnybrlrlxx201505t20150527_4618039htm

10

Wild Catch Production

Chinarsquos aquatic production wild catch is increasing steady rate year on year From

1992-2014 Chinarsquos total wild catch production increased from 781 million tonnes

to over 1713 million tonnes in 2014

Chinarsquos aquaculture production has also increased rapidly in the past two decades

aquaculture production increased from 776 million tonnes in 1992 to 3413

million tonnes in 2014 30

Chart 1 Aquatic Production (Wild Catch) 1995-2014 (unit 10000

Tonnes)

Source National Bureau of Statistics

Table 2 Chinas Aquatic Catch Volume

(unit 10000 tonnes)31

Year 2007 2008 2009 2010 2011 2012 2013 Total aquatic

catch 146924 148282 149472 154417 157995 161932 163032

Seawater

catch 12436 125796 127633 131523 135672 138953 139958

Freshwater

catch 22564 22482 21839 22894 22323 22979 23074

As evident in Table 2 Chinarsquos total aquatic catch has risen consistently since

2007 from 1469 million tonnes to 163 million tonnes in 2013 The growth rate

from 2012-2013 however was lower than in previous years Seawater catch also

increased steadily from 1243 million tonnes in 2007 to 1399 million tonnes in

2013

30 National Bureau of Statistics

31 httpdatastatsgovcneasyqueryhtmcn=C01 农业-水产品产量-天然生产海水淡水产量）

0

1000

2000

3000

4000

5000

6000

7000

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

11

Fresh water catch was much lower than seawater catch total catch decreased in

2007-2009 from 225 million tonnes to 218 million tonnes 2012 saw a further

decline as the catch declined by 65000 tons year on year 2013 however saw an

increase in catch by 10000 tonnes and reached 23 million tonnes in catch

Total aquatic catch production was 171 million tonnes in 2014 an increase of 50

year on year Please note that data for seawater catch and freshwater catch is

currently not available from the National Bureau of Statistics

Aquaculture

Aquaculture production accounts for about 734 of the total aquatic production

in China in 201432 According to the China Statistics Bureau the total aquaculture

production in 2014 was 474 million tonnes a year on year increase of 45

Seawater aquaculture production was 181 million tonnes a year on year of 42

Freshwater aquaculture production was 293 million tonnes increased by 476

year on year 33

Offshore fishing production was 20 million tonnes an increase of 4995 year

on year which accounted for 314 of the total aquatic production in 201434

Table 3 Chinas Aquatic Farming Figures (10000 tonnes)35

Year 2007 2008 2009 2010 2011 2012 2013

Total Aquaculture 327833 341282 362168 382880 402326 428835 454168

Seawater Aquaculture

130734 134032 140522 148230 155133 164381 173925

Freshwater Aquaculture

197099 207249 221646 234650 247193 264454 280243

Chinarsquos total aquaculture production increased from 3278 million tonnes in 2007

to 4541 million tonnes in 2013 Freshwater aquaculture has been more

productive across the years covered than seawater aquaculture

Seawater aquaculture increased from 130 million tonnes in 2007 to 173 million

in 2003 an increase of over 43 million tonnes during this period Freshwater

aquaculture increased from 197 million tonnes in 2007 to 280 million in 2013

an increase of over 83 million tonnes during the seven years covered

At the National Fishery Conference held in December 2014 the MOA announced

that the total aquatic production in China was 646 million tonnes36 a year on

year increase of 46937

Aquaculture production totalled 474 million tonnes in 2014 including

32 httpwwwagricnV20SCjjps201505t20150520_4605796htm

33 httpwwwfishfirstcnarticle-47924-1html

34 httpwwwfishfirstcnarticle-47924-1html

35 httpdatastatsgovcneasyqueryhtmcn=C01 （农业-水产品产量-人工养殖海水淡水产量）

36 httpdatastatsgovcneasyqueryhtmcn=C01（农业-水产品产量-水产品总产量）

37 httpwwwfishfirstcnarticle-47924-1html

12

272 million tonnes of fish

39 million tonnes of crustaceans

134 million tonnes of molluscs 20 million tonnes of algae 38

Chart 2 Aquaculture Production Composition in 2014

Chart 3 Seawater Aquaculture Production Composition 2014

Seawater aquaculture production totalled 181 million tonnes in 2014 including

12 million tonnes of fish

14 million tonnes of crustaceans

131 million tonnes of molluscs

20 million tonnes of algae

38

httpwwwfishfirstcnarticle-47924-1html

Fish 272 Crustaceans 39

Molluscs 134

Algae 20 Others 084

Aquaculture Production Composition in

2014 (millions tonnes)

Fish 12 Crustaceans

14

Molluscs 131

Algae 20

Others 03

Seawater Aquaculture Production Composition in 2014

(millions tonnes)

Fish

Crustaceans

Molluscs

Algae

Others

13

Chart 4 Freshwater Aquaculture Production Composition in 2014

Freshwater aquaculture production totalled 293 million tonnes in 2014 including

259 million tonnes of fish

25 million tonnes of crustaceans

02 million tonnes of molluscs

005 million tonnes of algae

Frozen Seafood

The total output of frozen seafood in China in 2014 was 85 million tonnes a year

on year of 54 The top five provinces producing frozen seafood in 2014 were

Guangdong Zhejiang Fujian Shandong and Liaoning with the production of 17 12 12 11 and 13 million tonnes respectively39

The total output of seafood in China from January to July 2015 was 299 million tonnes a year on year increase of 31240

The total output of seafood (frozen) in China from January to September 2015 was over 59 million tonnes a year on year decrease of 1641 The top five

provinces producing frozen seafood were Guangdong Fujian Zhejiang Shandong

and Liaoning Guangdong province had the largest output with over 12 million

tonnes followed by Fujian with over 10 million tonnes Please note that data for

non-frozen seafood in 2015 cannot be accessed at present through the public

domain

39 httpwwwaskcicomnewsdata2015031216106tnm1shtml

40httpssogzlibgovcninterlibSSOgoto75==9bmjh9mdsKCMSdetaildetailaspxQueryID=7ampCur

Rec=4amprecid=ampfilename=SICA20151021044ampdbname=CAPJLASTampdbcode=CJFQamppr=ampurlid=ampyx=ampv=MjQxNzl1Rnk3bFVMN0pKVmM9TmlUSWI3RzRIOVROcjQxRVpPOExZdzlNem1SbjZqNTdUM2ZscVdNMENMTDdSN3FlWXVk 41 httpwwwqianzhancomqzdatadetail149151102-c0f2286ahtml

Fish 259

Crustaceans 25

Molluscs 02

Algae 0

Others 05

Freshwater Aquaculture Production Composition in 2014 (million of tonnes)

Fish

Crustaceans

Molluscs

Algae

Others

14

Table 4 Total Output of Frozen Seafood in China from January to

September 201542

ProvinceRegion January-September

(Tonnes)

Increase Rate

()

Total 590118242 -168

Guangdong 12534087 382

Fujian 10995719 2036

Zhejiang 92000636 688

Shandong 68392019 -762

Liaoning 63834733 -3974

Hubei 36767246 663

Jiangsu 25329314 1133

Guangxi 21456763 232

Hunan 15541457 1732

Hainan 9035892 -714

Anhui 8525472 522

Jiangxi 4394009 1625

Tianjin 3119042 2449

Yunnan 2805391 2854

Hebei 245831 -1931

Henan 6626 -989

Gansu 1673 7893

Shanghai 123852 183

Xinjiang 929 1804

Beijing 740 -6355

Sichuan 224

Jilin 120 -673

Shanrsquoxi 4846 45257

In 2014 Shandong Guangdong Fujian and Zhejiang provinces ranked as the top

four aquatic production areas due to their favourable coastal positions and

wealth of fresh water resources and facilities

Jiangsu Hubei Guangdong Anhui Jiangxi and Hunan are the largest producers

for freshwater production43

42

httpwwwqianzhancomqzdatadetail149151102-c0f2286ahtml

15

Map 1 Largest Aquatic amp Freshwater Production Provinces in China

43 httpwwwshuichanccnews_view-172577html

Shandong

Jiangsu

Zhejiang

Fujian

Guangdong

Anhui

Hubei

Jiangxi Hunan

16

Chart 5 Rate of Changes for Farming and Fishing Products Production44

Note Changes= amount of current year-amount of previous year)amount of previous year

In 1997 both aquaculture and fishing production declined by 46 and 56

respectively compared to 1996 Since 1996 aquaculture production has increased

at an unstable rate for example 1998 saw a 76 increase while growth rates

saw their slowest growth in 2003 and 2008 at 41 and 46 in 2014

Fishing production including seawater and freshwater production declined year

on year by 15 in 2000 27 in 2001 and 07 in 2006 From 2007 to 2014

fishing production increased and 2014 saw the highest growth rate of 51 year

on year

Aquatic Catch Production

According to data from Chinarsquos Statistic Bureau the total aquatic catch

production in 2013 was 163 million tonnes seawater fishing catch was 139

million tonnes a 08 year on year increase and freshwater fishing catch was

23 million tonnes a year on year increased by 05

In 2014 aquatic catch production reached 171 million tonnes a year on year

increase of 51 and the production volume of seawater aquatic catch was RMB

1948 billion a year on year increase of RMB 1142 billion The production volume of freshwater aquatic catch was RMB 428 billion increased by RMB 254 billion45

44 httpdatastatsgovcneasyqueryhtmcn=C01 (农业-水产品产量-人工养殖海水+淡水天然生产海水+淡

水 最近 10 年计算年增长率) 45 httpwwwhbfmgovcnrdxwrdxw2015-05-1928552html

-100

-50

00

50

100

150

Percentage Change for Farming amp Fishing Production (1996-2014)

Fishing Change year on year Aquaculture change year on year

17

Aquatic Product Safety Concerns

Domestically cultured aquatic product quality and safety continues to be of major

concern for consumers A MOA aquatic safety survey highlighted some aquatic

farms have been penalised for the use of malachite green and overuse of

antibiotics In 2012 the MOA published administrative measures on the control of

agricultural product quality and safety which become effective on 1st October 2012 46 This stipulates regulations on risk monitoring and sampling for all

agricultural products

Although China is a net exporter of food fish and consumes 34 of global fish

supply according to the Food and Agriculture Organization of the United Nations

(FAO) 47 China still needs to import large quantities of seafood to meet Chinese

consumer demands Taking 2014 as an example China imported 428 million

tonnes of aquatic products a year on year increase of 26 valued at more than USD 91 billion a year on year increase of 63

48

Food safety scandals in China remain prevalent in 2014 several fast food chains

were affected by a rotten meat scandal A TV report alleged employees of a

leading supplier to several restaurants had changed the expiration date of meat

This resulted in 500 McDonaldsrsquo chains providing a limited menu Other brands

affected included Burger King KFC Pizza Hut Starbucks and Papa Johns 49

Food scandals in China has damaged Chinese consumers confidence and trust in

food production processes and standards Consumers of imported food in China

are generally high and upper-middle income locals and expatriates These

consumers can afford to pay higher prices for food and are motivated to do so because of increasing concerns about food safety and health50

Chinese consumers and the government are paying more attention to the safety

of food The General Administration of Quality Supervision Inspection and

Quarantine (ASQIQ) has developed a system to supervise imported food safety

which came into effect on 1st October 2015 For imported seafood the

supervision consists of seven steps

1 Investigate the country of origin As of January 2015 ASQIQ has visited

more than 10 countries to conduct field surveys

2 Only seafood varieties that have completed all inspections and quarantine

entry procedures can export products to China Over 100 countries and

7000 seafood varieties have completed inspections and quarantine entry

procedures

3 Only overseas manufacturers that have obtained relevant registration in

China can export seafood to China Over 10000 seafood companies from

77 countries and regions have registered

4 All companies that comply with the Food Safety Law can export products

to China and all exporters and importers must be registered

46 httpwwwmoagovcnzwllmtzggbl201208t20120817_2860374htm

47 httpwwwfaoorgdocrep019i3640ei3640epdf

48 httpwwwaskcicomnewschanye20150225154220xwyxshtml

49 httpwwwtelegraphcoukfinancechina-business10984403A-quarter-of-McDonalds-in-China-

affected-by-rotten-meat-scandalhtml 50 httpwwweusmecentreorgcnreportfood-and-beverages-sector-report

18

5 ASQIQ will verify the identification of each batch of products Products

must be accompanied by relevant certifications issued by exporting

countries 77 certificates from countries around the world are recognised

by ASQIQ

6 ASQIQ will verify the licenses of high risk products In 2014 China issued

more than 5000 licenses

7 All imported seafood products must comply with the relevant standards in China before entering the country 51

Fishery Development Plans 2011-2015 In October 2011 the MOA published its 12th Five Year Plan (2011-2015) entitled

the Development Plan for Fishery Significant targets under the plan include

Meeting the rapidly growing demand for quality aquatic products from

Chinese consumers

Placing an increased emphasis on the balance between aquaculture

development and ecological protection

Reconstructing and standardising 13 million Hectares (Ha) of aquaculture

ponds to raise productivity and achieving safetyquality targets for 980 of

aquatic products

Maintaining the stability of growing marine fishery output in other territorial

seas with a target production of 13 million tonnes per year up from 2010rsquos

output of 11 million tonnes

Licensing all aquaculture production facilities by 2015

Raising production to 60 million tonnes by 2015 with 750 from

aquaculture (as compared to 720 in 2011)

Fishery Development Plans 2016-2020

In 2016 the MOA will publish a new five year development plan which will

outline a blueprint for the development of the sector from 2016 -2020 At present

there is no specific content of the plan available in the public domain CBBC will

provide SIA an update date on the 13th Five Year Plan when it is published

51 httpnewsfoodmatenet201501291753html

19

33 Aquatic Consumption

China imported 42 million tonnes of seafood with the value of approximately USD

91 billion52 in 2014

As Chinarsquos processing and distribution system becomes more developed and the

affluence of consumers increases interest in a more diverse and nutritious diet

has led to greater quantities of seafood being consumed

Please note that information for 2013 and 2014 is not yet available in the public

domain

At present urban dwellers eat significantly more aquatic products than those in

rural areas however there is a strong potential for growth in the rural sector

In 2007 per capita consumption of seafood by urban dwellers was 142kg this

increased to 152kg in 2010 in 2011 there was a decrease in consumption of

aquatic products to 146kg however by 2012 per capita consumption for urban

dwellers increased to 152kg again

Rural dwellers per capita consumption of aquatic products reached 54kg in 2007

and declined to 52kg in 2008 Over the following years (2009-2012) the growth

rate varied from 52-54kg

Chart 6 Per Capita Consumption (Urban vs Rural) Trends of Aquatic

Products

Please note that information from 2012 is the most up to date information

available from the Statistics Bureau

Per capita consumption is highest in coastal regions and locations with high

disposable incomes particularly in first-tier cities such as Beijing and Shanghai

52

httpwwwaskcicomnewschanye20150225154220xwyxshtml

142

119 122

152 146 152

54 52 53 52 54 54

2007 2008 2009 2010 2011 2012

Per Capita Consumption of Aquatic Products

Urban (Kg) Rural (Kg)

20

According to Aqua Infocn an industry website over the next 10 years China

aims to strengthen marine fishery resources and ecological environmental

production and improving sustainability Aquatic production by 2020 is estimated

to reach 73 million tonnes

Average per capital consumption of aquatic products is expected to grow to

198kg in 2015 but growth rates are expected to slow and by 2024 per capita

consumption is expected to reach 239kg with an average annual growth rate of

23 53

Improvements in rural residentsrsquo income and improvements in the transport of

aquatic products is expected to increase consumption of rural residents By 2024

per capital consumption of urban residents is predicted to reach 301kg while per

capital rural consumption is estimated to reach 128kg

Aquatic product exports are also predicted to increase however production costs

are also expected to increase Importation of aquatic products is expected to

increase with an annual growth rate of 28 expected from 2015-2024 54

53

httpwwwaquainfocnnews20154222015422915161058shtml 54

httpwwwaquainfocnnews20154222015422915161058shtml

21

34 Overview of High End Seafood Consumption55

Anti-corruption policies introduced in 2012 by President Xi Jingping have resulted

in a restriction of lavish receptions paid for by government funds This has

resulted in decreased consumption of wine and other high-end food and beverage

products

In 2013 the total sales revenue of Chinarsquos catering industry in China was RMB 25 trillion56 a year on year increase of by 90 the lowest growth rate since

1978 and much lower that growth rates in 2011 and 2012 at 169 57 and

1369 58 respectively In 2014 the total sales in Chinarsquos catering industry

increased by 97 to RMB 28 trillion 59

The sales of high-end seafood however is increasing as Chinarsquos middle class

consumers are turning to high-end good quality products

In China seafood consumers with higher disposable incomes are more likely to

consume seafood products Wealthier Chinese consumers tend to be more

educated and aim to lead a healthier life style

Chinarsquos e-commerce platforms are competing against traditional sales channels to

sell aquatic products In order to gain advantages over other e-commerce

platforms they have extended their product portfolios to include imported high-

end seafood products Products include high-end seafood like Canadian wild Arctic

shrimp Spanish red shrimp Alaska silver cod Chilean king crab Scotland

imported gold crab Ecuador live frozen white shrimp Boston lobster Norwegian

salmon and American black cod

55 httpwwwchinairncomnews20131105160637536html

56httpssogzlibgovcninterlibSSOgoto75==9bmjh9mdsKCMSdetaildetailaspxQueryID=12ampC

urRec=8amprecid=ampfilename=DAJJ201503026ampdbname=CJFDLAST2015ampdbcode=CJFQamppr=ampurlid=ampyx=ampuid=WEEvREcwSlJHSldRa1FhcXZnODRFczZIR3Y0VFZZTXRUV05Xa2hQYlhmNmRrc2FYbDg4c0ZyS2YyM0NxM2t2bXR3PT0=$9A4hF_YAuvQ5obgVAqNKPCYcEjKensW4IQMovwHtwkF4VYPoHbKxJwampv=MTc0NTFwRnlEZ1Y3ek1JU3pCWkxHNEg5VE1ySTlIWW9SOGVYMUx1eFlTN0RoMVQzcVRyV00xRnJDVVJMK2VadWQ= 57 httpwwwcanyin168comglyyglzxsjtj20120340515html

58 httpwwwhncomgovcncs_smfwc_gzdtshow76534aspx

59httpssogzlibgovcninterlibSSOgoto75=dota9bmjh9mdsknsdetaildetailaspxQueryID=2ampCu

rRec=1amprecid=ampFileName=XQYI201503007ampDbName=CJFDLAST2015ampDbCode=CJFQamppr=

22

Table 5 Imports of High-End Seafood Products (2012-September 2015)

Product

Quantity (Tonnes)

2012 2013 2014

January ndash

September

2015

Frozen Crab60 30491 21526 19941

17428

Non-Frozen lobsters Not For Cultivation61

2001 2538 5899

6915

Live Fresh Chilled

Oysters Not For Cultivation62

808 667 936

1443

Crab63 16 355 181

651

Live Fresh Chilled

Mussels Not For Cultivation64

733 52 91

303

Frozen Norway Lobsters65 401 317 360

261

Atlantic Salmon66 3 3 2 16

Other Fresh Or Chilled Salmon67

6 NA NA NA

Sources China Customs

According to China Customs latest statistics imports of frozen crabs have

decreased in recent years in 2012 China imported over 30400 tonnes in 2013

and this had decreased to just over 21000 tonnes in 2013 and just over 19900

tonnes in 2014 In the first nine months of 2015 China imported over 14400

tonnes of frozen crab

The imports of non-frozen lobsters not for cultivation have increased rapidly in

recent years from over 2000 tonnes in 2014 to over 6900 tonnes in 2015 in the

first nine months of 2015

Crab imports have also increased but the imports of livefreshchilled mussels not

for cultivation have decreased from 733 tonnes in 2012 to 91 tonnes in 2014

Imports have seen an increase in the first nine months of 2015 to 303 tonnes

Imports of frozen Norway lobsters have also seen a decrease from 401 tonnes in

2012 to 360 in 2014 Atlantic salmon imports increased from 16 tonnes in the

first nine months of 2015 from 2 tonnes in 2014

60 HS Code 03061490 61 HS Code 03062290

62 HS Code 03071190

63 HS Code 16051000

64 HS Code 3073190

65 HS Code 03061500

66 HS Code 16041110

67 HS Code 03021900

23

Table 6 Part of Imports of Seafood Products (2012 ndash September 2015

Unit USD)

Product

Value (USD)

2012 2013 2014

January ndash

September

2015

Frozen Crab

203941455

158433287

160444476

141935815

Non-Frozen

lobsters Not

For

Cultivation

45244730

68316501

159915113

139244937

Live Fresh

Chilled

Oysters Not

For

Cultivation

9001235

10965661

16450492

16481455

Frozen

Norway

Lobsters

2061601

1814629

3502403

2404646

Crab

1206907

2610688

1251548

1866701

Live Fresh

Chilled

Mussels Not

For

Cultivation

135311

518288

1186424

921967

Atlantic

Salmon

115367

90949

28107

155131

Other Fresh

Or Chilled

Salmon

9723

37783

NA

NA

Source China Customs

Although the quantity of imports of frozen crab decreased from 2013 to 2014 the

value of imports increased by over USD 2 million The value of imported non

frozen lobsters for cultivation have increased rapidly by over USD 94 million from 2012 to the first nine months of 2015

The value of livefresh chilled oysters not for cultivation has increased also the

value of exports in the first nine months reached USD 164 million surpassing 2014rsquos total of 164 million tonnes

Although China only imported three tonnes of Atlantic salmon in 2012 the total

value of products reached over USD 115 300 and over USD 90000 for three

tonnes in 2013 In contrast in the first nine months of 2015 China imported 16

tonnes at a value at over USD 155100 the value of salmon imports are therefore decreasing

24

35 Export Opportunities

Imports

The value of imported seafood in 2014 was estimated at USD 91 billion in 2014

a year on year increase of 63 the import volume was estimated to have

reached 43 million tonnes a year on year increase of 2768

Table 7 Seafood Imports by Country of Origin69

Nations

and

regions

2013

Volume

(10000

tons)

2013

Value

(USD

millions)

2013

Volume

Growth

rate

2013

Value

Growth

rate

2014

2014

Volume

(10000

tons)

2014

Value

(USD

millions)

2014

Volume

Growth

rate

2014

Value

Growth

rate

Russia

1001 1487 44 38 873 1404 -128 -56

America

570 1292 -59 -65 591 1379 35 67

Peru

584 1018 -311 -133 647 1045 108 27

ASEAN 529 958 285 289 542 1080 24 128

Chile 218 582 35 121 185 533 -153 -84

Norway 181 432 81 67 213 540 174 248

Canada 81 406 213 173 84 466 33 150

Russia was the largest source of Chinarsquos seafood imports in 2013 and 2014

American seafood imports to China declined by 59 in 2013 but increased by

35 in 2014 Chinarsquos imports of Chilean seafood saw a significant reduction by

153 in 2014 while Chinarsquos imports of seafood from Norway increased by nearly

174

68 httpwwwaskcicomnewschanye20150225154220xwyxshtml

69 httpwwwmoagovcnztzlnybrlrlxx201402t20140211_3755451htm

httpwwwaskcicomnewschanye20150225154220xwyxshtml

23

Table 6 Part of Imports of Seafood Products (2012 ndash September 2015

Unit USD)

Product

Value (USD)

2012 2013 2014

January ndash

September

2015

Frozen Crab

203941455

158433287

160444476

141935815

Non-Frozen

lobsters Not

For

Cultivation

45244730

68316501

159915113

139244937

Live Fresh

Chilled

Oysters Not

For

Cultivation

9001235

10965661

16450492

16481455

Frozen

Norway

Lobsters

2061601

1814629

3502403

2404646

Crab

1206907

2610688

1251548

1866701

Live Fresh

Chilled

Mussels Not

For

Cultivation

135311

518288

1186424

921967

Atlantic

Salmon

115367

90949

28107

155131

Other Fresh

Or Chilled

Salmon

9723

37783

NA

NA

Source China Customs

Although the quantity of imports of frozen crab decreased from 2013 to 2014 the

value of imports increased by over USD 2 million The value of imported non

frozen lobsters for cultivation have increased rapidly by over USD 94 million from 2012 to the first nine months of 2015

The value of livefresh chilled oysters not for cultivation has increased also the

value of exports in the first nine months reached USD 164 million surpassing 2014rsquos total of 164 million tonnes

Although China only imported three tonnes of Atlantic salmon in 2012 the total

value of products reached over USD 115 300 and over USD 90000 for three

tonnes in 2013 In contrast in the first nine months of 2015 China imported 16

tonnes at a value at over USD 155100 the value of salmon imports are therefore decreasing

24

35 Export Opportunities

Imports

The value of imported seafood in 2014 was estimated at USD 91 billion in 2014

a year on year increase of 63 the import volume was estimated to have

reached 43 million tonnes a year on year increase of 2768

Table 7 Seafood Imports by Country of Origin69

Nations

and

regions

2013

Volume

(10000

tons)

2013

Value

(USD

millions)

2013

Volume

Growth

rate

2013

Value

Growth

rate

2014

2014

Volume

(10000

tons)

2014

Value

(USD

millions)

2014

Volume

Growth

rate

2014

Value

Growth

rate

Russia

1001 1487 44 38 873 1404 -128 -56

America

570 1292 -59 -65 591 1379 35 67

Peru

584 1018 -311 -133 647 1045 108 27

ASEAN 529 958 285 289 542 1080 24 128

Chile 218 582 35 121 185 533 -153 -84

Norway 181 432 81 67 213 540 174 248

Canada 81 406 213 173 84 466 33 150

Russia was the largest source of Chinarsquos seafood imports in 2013 and 2014

American seafood imports to China declined by 59 in 2013 but increased by

35 in 2014 Chinarsquos imports of Chilean seafood saw a significant reduction by

153 in 2014 while Chinarsquos imports of seafood from Norway increased by nearly

174

68 httpwwwaskcicomnewschanye20150225154220xwyxshtml

69 httpwwwmoagovcnztzlnybrlrlxx201402t20140211_3755451htm

httpwwwaskcicomnewschanye20150225154220xwyxshtml

24

35 Export Opportunities

Imports

The value of imported seafood in 2014 was estimated at USD 91 billion in 2014

a year on year increase of 63 the import volume was estimated to have

reached 43 million tonnes a year on year increase of 2768

Table 7 Seafood Imports by Country of Origin69

Nations

and

regions

2013

Volume

(10000

tons)

2013

Value

(USD

millions)

2013

Volume

Growth

rate

2013

Value

Growth

rate

2014

2014

Volume

(10000

tons)

2014

Value

(USD

millions)

2014

Volume

Growth

rate

2014

Value

Growth

rate

Russia

1001 1487 44 38 873 1404 -128 -56

America

570 1292 -59 -65 591 1379 35 67

Peru

584 1018 -311 -133 647 1045 108 27

ASEAN 529 958 285 289 542 1080 24 128

Chile 218 582 35 121 185 533 -153 -84

Norway 181 432 81 67 213 540 174 248

Canada 81 406 213 173 84 466 33 150

Russia was the largest source of Chinarsquos seafood imports in 2013 and 2014

American seafood imports to China declined by 59 in 2013 but increased by

35 in 2014 Chinarsquos imports of Chilean seafood saw a significant reduction by

153 in 2014 while Chinarsquos imports of seafood from Norway increased by nearly

174

68 httpwwwaskcicomnewschanye20150225154220xwyxshtml

69 httpwwwmoagovcnztzlnybrlrlxx201402t20140211_3755451htm

httpwwwaskcicomnewschanye20150225154220xwyxshtml

25

Chart 7 Seafood Imports by Country of Origin (unit 10000 tonnes)

The value of Russian seafood imports to China decreased in 2014 by 54 and

Chilersquos decreased by 84 Americanrsquos value of seafood imports to China

increased by 67 Norwegian seafood imports to China increased by 248

while Canadarsquos increased 15

ASEAN imports of seafood to China also increased in terms of value in 2013 and

2014 and overtook Peru in terms of value imports in 2014 even though China

imported more from Peru by volume than from ASEAN

Chart 8 Seafood Imports by Country of Origin (USD million)

1001

584 570 529

218 181 81

873

647 591 542

185 213 84

Russia Peru America ASEAN Chile Norway Canada

Seafood Imports By Country of Origin (10000 tonnes)

2013 Volume 2014 Volume

1487 1292

1018 958

582 432 406

1404 1379

1045 1080

533 540 466

Russia America Peru ASEAN Chile Norway Canada

Seafood Imports By Country of Origin (USD million)

2013Value 2014Value

26

UK Seafood Exports to China

According to UK government statistics in 2014 the UK exported 13000 tonnes of

salmon to China and in total exported 29700 tonnes of fish to China70 Please

note that the volume of exports measure by the UK government and China

Customs may differ due to different methodologies in collecting data

In order to identify the import value of other aquatic product varieties CBBC

searched China Customs to gather further information

The UKrsquos export value of crustaceans to China increased significantly from USD

111 million to 234 million in 2014 The first nine months of 2015 however have

seen a significant decrease in China importing crustaceans from the UK The

imports of UK molluscs to China saw significant decreases from over USD 36

million in 2011 to USD 12 million in 2012 In 2013 and 2014 the UK exported

just over USD 270000 worth of molluscs each year however the first nine

months of 2015 has seen an increase of imports to China

Chinarsquos import value of UK fish decreased in 2012 to USD 140 million but rapidly

increased in 2013 to USD 313 million and in 2014 to USD 561 million In the

first nine months of 2015 the value of the UK fish imports to China reached USD

382 million greater than 2013rsquos total value

Table 8 UK Seafood Exports to China (2011-September 2015 USD)

Source China Custom

Please note that CBBC could not identify the quantity of imports per category

presented above

70httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile462753UK_Sea_Fis

heries_Statistics_2014_-_online_versionpdf 71 HS Code 0306

72 HS Code 0307

73 HS Code 0302

Product 2011 2012 2013 2014 January-

September

2015

Crustacean71 11184285 14644820 15093292 23406526 8781404

Molluscs72 3649269 1280165 276560 270981 507638

Fish73 17967903 14058409 31339745 56113567 38279782

26

UK Seafood Exports to China

According to UK government statistics in 2014 the UK exported 13000 tonnes of

salmon to China and in total exported 29700 tonnes of fish to China70 Please

note that the volume of exports measure by the UK government and China

Customs may differ due to different methodologies in collecting data

In order to identify the import value of other aquatic product varieties CBBC

searched China Customs to gather further information

The UKrsquos export value of crustaceans to China increased significantly from USD

111 million to 234 million in 2014 The first nine months of 2015 however have

seen a significant decrease in China importing crustaceans from the UK The

imports of UK molluscs to China saw significant decreases from over USD 36

million in 2011 to USD 12 million in 2012 In 2013 and 2014 the UK exported

just over USD 270000 worth of molluscs each year however the first nine

months of 2015 has seen an increase of imports to China

Chinarsquos import value of UK fish decreased in 2012 to USD 140 million but rapidly

increased in 2013 to USD 313 million and in 2014 to USD 561 million In the

first nine months of 2015 the value of the UK fish imports to China reached USD

382 million greater than 2013rsquos total value

Table 8 UK Seafood Exports to China (2011-September 2015 USD)

Source China Custom

Please note that CBBC could not identify the quantity of imports per category

presented above

70httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile462753UK_Sea_Fis

heries_Statistics_2014_-_online_versionpdf 71 HS Code 0306

72 HS Code 0307

73 HS Code 0302

Product 2011 2012 2013 2014 January-

September

2015

Crustacean71 11184285 14644820 15093292 23406526 8781404

Molluscs72 3649269 1280165 276560 270981 507638

Fish73 17967903 14058409 31339745 56113567 38279782

27

Table 9 UK Seafood Exports to China by Volume (2012-September2015)

Product Quantity (Tonnes)

2012 2013 2014 2015

Frozen Norway Lobsters74

729 418 446 234

Frozen Crab75 309 420 410 573

Non-Frozen lobsters Not For Cultivation76

3 1 21 10

Other Fresh Or Chilled Salmon77

19 NA 1227 1162

Source China Customs

According to China Customs the UK exported 729 tonnes of frozen Norway

lobsters to China in 2012 Exports significantly decreased in 2013 to 418 tonnes

and slightly increased to 446 tonnes in 2015 In the first nine months of 2015

the UK exported 234 tonnes of frozen Norway lobsters to China

The exports of frozen crab from the UK to China has increased from 309 tonnes in

2012 to 420 in 2013 2015 saw a slight decline in exports of frozen Norway

lobsters to China The first nine months of 2015 have seen exports of frozen

Norway lobsters to China from the UK increase to 573 tonnes

The UKrsquos exports of non-frozen lobsters not for cultivation increased in 2014 to 21

tonnes from 1 tonne in 2013 In the first five months of 2015 the UK exported

10 tonnes of non-frozen lobsters not for cultivation to China

The exports of other fresh or chilled salmon increased rapidly from 19 tonnes in

2012 to over 1200 tonnes in 2014 In the first nine months of 2015 the UK has

exported over 1100 tonnes of other fresh or chilled salmon to China

74 HS Code 03061500

75 HS Code 03061490

76 HS Code 03062290

77 HS Code 03021900

28

Table 10 UK Seafood Exports to China by Value (2012-September2015)

Product Value (USD)

2012 2013 2014 2015

Frozen Norway

Lobsters

1901348 1137290 3289451 2123097

Frozen Crab 1345150 1907073 2349219 3233620

Non-Frozen

lobsters Not For

Cultivation

70174 24455 593375 289964

Other Fresh Or

Chilled Salmon

152596 NA 9076632 7016809

Source China Customs

Although the UK exported similar quantities of frozen Norway lobster in 2013

(418 tonnes) and 2014 (446 tonnes) the value of exports in 2014 was more than

USD 20 million higher than 2013 The value of exports of frozen crab increased

by over USD 442000 although the UK exported 10 less tonnes in 2014 (410 tonnes) than 2013 (420 tonnes)

The value per tonne of other fresh or chilled salmon has decreased in the first

nine months of 2015 in 2014 the value per tonne was USD 7397 however in

the first nine months of 2015 the value per tonne was USD 6038 although the

UK exported only 65 tonnes less in the first nine months of 2015 compared to all of 2015

In August 2015 China restricted the imports of live crabs from the UK after tests

found high levels of cadmium in shellfish 78 This will therefore affect exports of

live crabs from the UK to China in 2015

78 httpwwwseafoodsourcecomnewsfood-safety-healthchina-restricts-live-crab-imports-from-

one-country

28

Table 10 UK Seafood Exports to China by Value (2012-September2015)

Product Value (USD)

2012 2013 2014 2015

Frozen Norway

Lobsters

1901348 1137290 3289451 2123097

Frozen Crab 1345150 1907073 2349219 3233620

Non-Frozen

lobsters Not For

Cultivation

70174 24455 593375 289964

Other Fresh Or

Chilled Salmon

152596 NA 9076632 7016809

Source China Customs

Although the UK exported similar quantities of frozen Norway lobster in 2013

(418 tonnes) and 2014 (446 tonnes) the value of exports in 2014 was more than

USD 20 million higher than 2013 The value of exports of frozen crab increased

by over USD 442000 although the UK exported 10 less tonnes in 2014 (410 tonnes) than 2013 (420 tonnes)

The value per tonne of other fresh or chilled salmon has decreased in the first

nine months of 2015 in 2014 the value per tonne was USD 7397 however in

the first nine months of 2015 the value per tonne was USD 6038 although the

UK exported only 65 tonnes less in the first nine months of 2015 compared to all of 2015

In August 2015 China restricted the imports of live crabs from the UK after tests

found high levels of cadmium in shellfish 78 This will therefore affect exports of

live crabs from the UK to China in 2015

78 httpwwwseafoodsourcecomnewsfood-safety-healthchina-restricts-live-crab-imports-from-

one-country

29

Recent Consumer Trends and Business Opportunities

Retail and food services channels are the most important outlets for imported

food products in China These channels are growing and developing due to

increased consumer affluence urbanisation food safety concerns health

consciousness and the demand for convenience increases

Supermarkets and hypermarkets are also developing rapidly in China

International hypermarkets tend to have more awareness and experience in

imported brands and products and realise the value that new products can bring

to the market

Specialityboutique stores such as City Shop Ole and Taste are also increasing in

numbers in first-tier cities and some second-tier cities 79 across China These

stores target expatriates and high income locals stocking a high proportion of

imported foods These stores are increasingly becoming important retail channels

for high-end and speciality products

Chinese consumers have traditionally preferred live and fresh seafood products

This accounts for 900 of the total seafood retail consumption in China

However as the demand for a more convenience driven lifestyle develops

consumers are turning towards ready-to-cook and processed products of high

quality This provides an opportunity for processed products including processed

fish shellfish and shrimp through the hypermarket channel

Wholesale markets are the main distribution channels for imported aquatic

products Catering services wet markets supermarkets and corporate canteens

purchase their products through wholesale markets Most leading importers and

distributors have a presence and tend to sell to distributors who have a resident

booth in these markets

There are over 300 seafood markets in Chinarsquos large cities and coastal cities

Well-known seafood wholesale markets include Guangzhou Huangsha seafood

wholesale market Shanghai Tongchuan seafood market and Beijing Jinshen

seafood market These markets act as regional hubs for seafood distribution in

China

Other well-known seafood markets include

Wanwei Seafood

Fusheng Lobster Distributor

GangAo Moving Distributor

Wangwang Seafood Distributor

Shenhong Frozen Seafood Distributor

Seafood Online Trading Platform

Huacai Seafood Distributor

79 Cities in China are classified into tiers (1-5) Cities are classified by GDP cultural significance

population and transport links amongst others Tier one cities include Beijing Shanghai and Shenzhen

30

E-commerce platforms have become an important sales channel for food and

beverage products including seafood in China According to statistics from the

China Electronic Business Research Centre the sales of fresh food through e-

commerce platforms in 2014 in China reached RMB 26 billion a year on year

increase of 10080

80 httpwwwlinkshopcomcnwebarchives2015322423shtml

31

4 DOING BUSINESS IN CHINA

Due to its size and the rapid rate of change it is undergoing the retail sector in

China is complex and any potential importers must explore it very carefully

Understanding the countryrsquos supply structures is crucial before attempting to

establish partnerships or distribution networks especially for products such as

fresh food that rely on fast and efficient distribution

Below is a summary of the main points to consider when analysing the Chinese

market

41 The Supply Structure

There are usually four steps in the distribution of fish and seafood products in

China

Importation

Distribution

Sub-distribution

Retail

From a logistics point of view importation into China is relatively straightforward

There are two main points of entry for fresh seafood into China in the north

Qingdao81 and Dalian82which are primarily used for processing imported seafood

for re-export Shenzhen Guangzhou and Shanghai are also important ports but

these are primarily used for importing seafood for consumption in China

The free trade zone in Shanghai provide overseas companies with a trading

platform to pilot their products which allows them to learn more about the

market in China before they develop further in the Chinese market and go

through all importing procedures Products offered in Free Trade Zones and cross

boarder e-commerce platforms can be delivered directly to consumers therefore

there is no need for sub-distribution

81

httpwwwfishsoucom100109143907html 82

httpwwwfishfirstcnarticle-46125-1html

32

Chart 9 Typical Supply Channel Structure for Aquatic Products in

China

Once purchased from the wholesale markets distributors sell their products

through the following three channels

Households and small restaurants This sector of consumers usually

purchases their seafood products from local markets generally in small

quantities

Direct Retail Channel The volume of both processed and live seafood

being purchased in supermarkets and hypermarkets is increasing rapidly

with consumers generally including mid-sized restaurants and households

Food Service Channel The largest sector of seafood consumers is the

Hotels Restaurants and Institutions (ldquoHRIrdquo) sector

Some e-commerce companies can act as direct distributors for imported seafood

such as Yihaodian and WoMai Some e-commerce platforms the can source

products and sell to the consumers directly Some platforms also work with

distributors to sell products

33

Key Chinese Ports

The tables below illustrate the total volume of through put for the top ten ports in

2014 in China Qingdao and Dalian are the two major ports and the largest arrival

ports for seafood products in China Well-established facilities including

processing factories in Qingdao and Dalian solidify their status as the two seafood import hubs in China 83

Please note that data covering imports only is not currently available in the public

domain for 2014

Ningbo-Zhoushan port was the largest port in China in terms of tonnage however

Shanghai port was the largest port in terms of Twenty-Foot Equivalent Unit (TEU)

Table 11 2014 Top 10 Ports in China (millions of tonnes)

Ranking Port Name Millions of Tonnes Year on year

increasedecrease

()

1 Ningbo-Zhoushan Port 873 78

2 Shanghai Port 755 -26

3 Tianjin Port 540 78

4 Tangshan Port 501 122

5 Guangzhou Port 499 95

6 Suzhou Port 479 54

7 Qingdao Port 465 33

8 Dalian Port 428 51

9 Rizhao Port 353 141

10 Yingkou Port 345 77

Table 12 2014 Top 10 Ports in China by TEU

Ranking Port Name 10000 TEU Year on year

increasedecrease

()

1 Shanghai Port 35285 49

2 Shenzhen Port 2403 32

3 Ningbo-Zhoushan Port 1945 121

4 Qingdao Port 166244 71

5 Guangzhou Port 1616 55

6 Tianjin Port 1405 79

7 Dalian Port 101276 11

8 Xiamen Port 85724 70

9 Yingkou Port 50054 -88

10 Lianyungang Port 445 -161

83 httpinfojctranscomnewshyxw2015292111220shtml

33

Key Chinese Ports

The tables below illustrate the total volume of through put for the top ten ports in

2014 in China Qingdao and Dalian are the two major ports and the largest arrival

ports for seafood products in China Well-established facilities including

processing factories in Qingdao and Dalian solidify their status as the two seafood import hubs in China 83

Please note that data covering imports only is not currently available in the public

domain for 2014

Ningbo-Zhoushan port was the largest port in China in terms of tonnage however

Shanghai port was the largest port in terms of Twenty-Foot Equivalent Unit (TEU)

Table 11 2014 Top 10 Ports in China (millions of tonnes)

Ranking Port Name Millions of Tonnes Year on year

increasedecrease

()

1 Ningbo-Zhoushan Port 873 78

2 Shanghai Port 755 -26

3 Tianjin Port 540 78

4 Tangshan Port 501 122

5 Guangzhou Port 499 95

6 Suzhou Port 479 54

7 Qingdao Port 465 33

8 Dalian Port 428 51

9 Rizhao Port 353 141

10 Yingkou Port 345 77

Table 12 2014 Top 10 Ports in China by TEU

Ranking Port Name 10000 TEU Year on year

increasedecrease

()

1 Shanghai Port 35285 49

2 Shenzhen Port 2403 32

3 Ningbo-Zhoushan Port 1945 121

4 Qingdao Port 166244 71

5 Guangzhou Port 1616 55

6 Tianjin Port 1405 79

7 Dalian Port 101276 11

8 Xiamen Port 85724 70

9 Yingkou Port 50054 -88

10 Lianyungang Port 445 -161

83 httpinfojctranscomnewshyxw2015292111220shtml

34

Map 2 Key Chinese Ports

35

Update on sea ports importing seafood in China in 2014

In 2014 the State Inspection and Quarantine Bureau inspected and authorised

the following seaports to authorise seafood-importation-and-exportation seaports

in China84

Table 13 Seaports Importing Seafood

Area Ports

Fujian

Province

Shijin Port Fuzhou Changle International

Airport Fuqing Nanqing Island Port Xiamen

Haichuang Port Pingtan Port Area

Shanxi

Province

Xirsquoan International Port

Zhejiang

Province

Wenzhou Longwan International Airport

Hangzhou Airport Zhoushan Comprehensive

Free Trade Zone

Shandong

Province

Weihai Port Qsingdao Port Qsingdao Airport

Guangdong

Province

Jieyang Chaoshan International Airport

Guangzhou Baiyun International Airport

Shenzhen Baoan International Airport

Zhongshan Port Shengang Port

Schuan

Province

Chengdu Port

Jiangsu

Province

Wuxi Airport Guanyin Airport Nanjing

Airport

Dongbei

Province

Shenyang Taoxian International Airport

Shenzhen Huanggang Port

Beijing Beijing Tianzhu Comprehensive Free Trade

Zone

84 httpfoodchinairncomnews20150106165612924html

httpwwwshuichanccnews_view-254470html httpjipiaokuxuncnzixun-90464html httpwwwchinawuliucomcnzixun20141204296312shtml httpwwwagrosccomNews983450html

httpliaoningnencomcnsystem20151008018496142shtml httpwwwgxciqgovcnxwzxgzdt38235htm httpdifanggmwcnnewspaper2015-0806content_108395016htm httpwwwweihaigovcnart2015812art_562_452168html httpnewschengducn201510121732325shtml httpwxsinacomcnnewswxnews2015-08-02detail-ifxfpcyu5017849shtml httpnewsycwbcom2015-0804content_20500484htm httpwwwshuichanccnews_view-260221html httpwww0duwcomxinwen201307030d9613html httpdglnciqgovcnxwbd201510t20151008_119721htm httpwwwszkagovcnxxgkqtgzdt201508t20150806_3145730htm httpwwwhizwgovcndatanews20150950718 httpwwwbjshygovcnItem70094aspx httpwww686618comdt-newsshow-11230959508420html httpwwwfjciqgovcndongshan291041291115518505indexhtml

35

Update on sea ports importing seafood in China in 2014

In 2014 the State Inspection and Quarantine Bureau inspected and authorised

the following seaports to authorise seafood-importation-and-exportation seaports

in China84

Table 13 Seaports Importing Seafood

Area Ports

Fujian

Province

Shijin Port Fuzhou Changle International

Airport Fuqing Nanqing Island Port Xiamen

Haichuang Port Pingtan Port Area

Shanxi

Province

Xirsquoan International Port

Zhejiang

Province

Wenzhou Longwan International Airport

Hangzhou Airport Zhoushan Comprehensive

Free Trade Zone

Shandong

Province

Weihai Port Qsingdao Port Qsingdao Airport

Guangdong

Province

Jieyang Chaoshan International Airport

Guangzhou Baiyun International Airport

Shenzhen Baoan International Airport

Zhongshan Port Shengang Port

Schuan

Province

Chengdu Port

Jiangsu

Province

Wuxi Airport Guanyin Airport Nanjing

Airport

Dongbei

Province

Shenyang Taoxian International Airport

Shenzhen Huanggang Port

Beijing Beijing Tianzhu Comprehensive Free Trade

Zone

84 httpfoodchinairncomnews20150106165612924html

httpwwwshuichanccnews_view-254470html httpjipiaokuxuncnzixun-90464html httpwwwchinawuliucomcnzixun20141204296312shtml httpwwwagrosccomNews983450html

httpliaoningnencomcnsystem20151008018496142shtml httpwwwgxciqgovcnxwzxgzdt38235htm httpdifanggmwcnnewspaper2015-0806content_108395016htm httpwwwweihaigovcnart2015812art_562_452168html httpnewschengducn201510121732325shtml httpwxsinacomcnnewswxnews2015-08-02detail-ifxfpcyu5017849shtml httpnewsycwbcom2015-0804content_20500484htm httpwwwshuichanccnews_view-260221html httpwww0duwcomxinwen201307030d9613html httpdglnciqgovcnxwbd201510t20151008_119721htm httpwwwszkagovcnxxgkqtgzdt201508t20150806_3145730htm httpwwwhizwgovcndatanews20150950718 httpwwwbjshygovcnItem70094aspx httpwww686618comdt-newsshow-11230959508420html httpwwwfjciqgovcndongshan291041291115518505indexhtml

36

42 The Direct Retail Channel

In 2014 the total retail volume in China was RMB 262 trillion increased by 12

year on year which was slower for five consecutive years The total retail volume

of the top 100 chain corporations was RMB 428 billion85 in 2014 which saw its

slower increase rate from 21 in 2010 to 51 in 201486 In the first half of

2015 the total retail volume in China was RMB 142 trillion increased by 10487

E-commerce retail continually increased rapidly in 2014 and its total volume

reached RMB 28 trillion increased by 487 year on year accounting for 107

of the total retail volume Although the increase rate was slower by 107 than

the previous year its market share continually increased 88 In the first half of

2015 E-commerce retail volume reached RMB 16 trillion increased by 487

accounting for 114 of the total retail volume The number of e-commerce users

reached 417 billion increased by 191 year on year

PWC estimated in early 2015 that the average retail volume growth will increase

by 87 in the next two years PWC further estimates that China will soon

overtake the US as the worldrsquos biggest retail market89

Supermarkets

Food retail in China is highly competitive with a number of Chinese and

multinational companies attempting to dominate the market

85 httpwwwccfaorgcnportalcnviewjsplt=33ampid=420784

86 httpwwwccfaorgcnuploadImgi201509181442563695372$9094600174662924255pdf

87 httpfjwinshangcomnews-504720html

88 httpwwwccfaorgcnuploadImgi201509181442563695372$9094600174662924255pdf

89 httpwwwpwccncomwebmediadoc635593364676310538_rc_outlook_201516pdf

37

Table 14 Leading Food Retailers in China

Listed below are the key supermarkets hypermarkets premium grocery stores

and convenience stores ranked in terms of their sales revenues in 201490

Company Brand Sales

Value

in 2014

(RMB

billion)

Total

Outlets

Shanghai Guangzhou Shenzhen

CR Vanguard Vanguard 1040 4127 24 60 174

Ole (high-end) 5 1 3

Blt (high-end) 2

TescoExpress 37 4 1

RT-Mart RT-Mart 860 304 16 4 2

Wal-Mart Wal-Mart 720 411 17 1 20

Sams 1 1 1

Neighbourhood

Market

0 0 2

Trust Market 0 15 4

LianHua LH 620 4325 40 0 0

Carrefour Carrefour 460 237 29 5 9

YongHui YH 430 337 5 2 2

NongGongShang NGS 290 2566 gt1300 0 0

Metro Metro 190 81 7 4 3

Auchan Auchan 170 68 9 1 0

ABest ABest 170 110 0 3 18

CP Lotus CP Lotus 140 77 22 5 0

Watsons Watsons 160 2088 na na na

Renrenle Renrenle 130 117 0 3 25

Aeon Aeon 098 50 na na na

ParknShop (China) ParknShop 040 70 0 22 10

Taste (high-

end)

0 3 1

approximate totals

Hypermarkets in China have generally favoured distributors and often do not

work with unfamiliar companies unless offered strong market support large

numbers of products and other incentives

90 httpwwwccfaorgcnuploadImgi201507131436775934355$5495839418958773948pdf

38

Promotion in the Retail Sector

Some major companies and even government organisations promote products

with festivals and sales promotions in supermarkets hotels ecommerce

platforms and food festivals

In 2014 Bord Bia organised two seafood trade and media events in Beijing and

Shanghai for 80 seafood buyers and media to assist them gain a better

understanding of Irish seafood and sample products91 The Norwegian Seafood

Council is currently promoting lsquoNorwegian Arctic Codrsquo in steak-style portions and

providing cooking instructions that consumers can use at home 92

In April 2014 the New Zealand Trade and Enterprise cooperated with Tmallcom

one of Chinarsquos largest Business to Consumer (B2C) e-commerce platforms in

China to promote live New Zealand seafood The promotion allowed seafood to

be caught packaged and air freighted to Shanghai within 36 hours within 72

hours orders were delivered93 In September 2015 the Alaska Seafood Marketing

Institute (ASMI) worked with Natregrto in Shanghai to promote Alaskan seafood

in-store 94 Ole a high-end supermarket also held an American food festival in

store in September 2015 The festival promoted American seafood amongst other

products 95

Hotel promotion trade conferences and media coverage are also great

promotional activities to raise the profiles of a product International exhibitions

such as those listed in Section 47 of this report are also crucial to developing a

presence and brand awareness within China as it allows visitors to taste the

produce

91 httpwwwbordbiaiecorporategovernanceeusupportpagesseafoodpromotionsin2014aspx

92 httpwwwseafoodsourcecomall-commentaryhow-norway-set-the-standard-for-marketing-

seafood-in-china 93 httpaquaculturedirectorycouklive-new-zealand-seafood-goes-online-china-promotion

94 httpenglishdevalaskaseafoodorgp=1420

95 httpenglishdevalaskaseafoodorgp=1415 httpenglishdevalaskaseafoodorgcat=10

39

43 The Food Service Channel

Many restaurants continue to buy live seafood from market booths while larger

chains tend to use importers Fish tanks in restaurants are a common sight in

China allowing customers to choose their own seafood products before they are

cooked Many of Chinarsquos largest supermarket chains for example Walmart

Carrefour often receive products directly from importers specifically to sell to

restaurant chefs and small retail outlets

The Hotel Restaurant and Institutional (HRI) sector has developed rapidly in

China due to expatriates overseas Chinese entrepreneurs returning Chinese

students and international and domestic tourists Chinas desire for seafood is

expected to show strong growth for the foreseeable future as general living

standards rise and the middle class grows Hotels and Restaurants

Tourism in China has increased substantially in recent years with an estimated

36 billion Chinese people travelling for holidays in 2014 Hotels are increasingly

being constructed to accommodate this growth with some regional cities seeing a particularly large rise in hotel construction96

The majority of hotels in China house lsquofull-servicersquo restaurants These usually

cater to non-guests as well as guests and are often among the best restaurants

in any given location Generally speaking the clientele found in Chinarsquos hotel

restaurants are upper-middle class urban dwellers and businessmen Wedding

banquets also make up a sizeable proportion of hotel restaurant revenues

Full-service restaurants of the type found in hotels represent Chinarsquos largest

foodservice sector accounting for 6713 of the entire sectorrsquos market value in

2013 Please note that information for 2014 is not yet available in the public

domain

According to the Statistics Bureau the number of tourism hotels that can offer

meals for tourists has increased in recent years from 11044 in 2010 to 12082

in 2013 with the average annual increase rate of 31 Please note that

information for 2014 is not yet available in the public domain

Fast Food

Despite the rise in popularity of high-end restaurants fast food remains the most popular food retail sector in China accounting for 19897 of all transactions in

2013 The sector has been valued at approximately RMB 898 Small kiosks and

vendors represent 78 of transactions with cafes and bars accounting for 05

and specific takeaway stores accounting for less than 0002

Non-Asian cuisine however is gaining popularity very quickly Western food has

made large inroads in the fast food sector over recent years with pizza in

particular gaining in popularity The two largest players in the fast food sector

Yum Brands and McDonalds provide predominantly Western food and have

96 httpwwwnewstimecomcnnxinwenshehui2015062977983html

97 2008-2013 快餐营业额占餐饮业营业额比例

httpdatastatsgovcneasyqueryhtmcn=C01 （住宿和餐饮业-住宿和餐饮情况-餐饮业企业收入）

40

developed a substantial portfolio of outlets across China Yum Brandsrsquo two largest

brands KFC and Pizza Hut now have more than 4600 and 1000 restaurants

respectively with its two main Asian cuisine brands Little Sheep and East

Dawning also seeing large growth

According to the 2015 Annual Report from the Chinese Hotel Association a

leading hotel association in China fast food enterprises stores coverage increased by 75 in 2014 and average turnover increased by 1198

According to the China Chain Store amp Franchise Association the top 10 fast food brands in China in 2014 are as below99

Table 15 Largest Fast Food Brands in China in 2014

Largest Fast Food Brands in China in 2014

Brand(English) Stores

Orient King of Dumplings 90

Hehegu 88

Yoshinoya 304

Porridge Jiahe 130

KFC 4600

Pasta Wang 108

Ajisen Ramen 669

Country Style Cooking 340

Yonghe King 320

True Kungfu 624

As of July 2015 McDonalds had more than 2160 stores in China100

Institutional Foodservice

Traditionally institutional foodservice in China was limited to hospitals

government offices schools and the transportation sector Over recent years

however the institutional foodservice industry has expanded into high-end office

complexes and companies The Ministry of Commerce estimates that Chinarsquos

catering industry value will reach RMB 37 trillion in 2015 and the volume of

institutional foodservice will be over RMB 13 trillion which accounts for 35 of the total volume 101

According to Shun Securities data a finance and research company the volume

of institutional foodservice in China in 2014 was over RMB 700 billion accounting

for around 40 of the total earnings in the catering industry 80 of consumers

were from companies and schools and 20 from government hospitals and

large events

According to a survey conducted in 2014 by Tencent one of chinarsquos largest

internet companies in first-tier cities white collar works spend on average RMB

25 for lunch and over 60 of the white collar workers spent more than RMB 20

98 httpupinquanjrjcomcn20151102134520012452shtml

99 httpwwwccascomcnArticleHTML107340html

100 httpszwinshangcomnews-508231html

101 httpwwwjiemiancomarticle328197html

41

for their lunch According to China Cuisine Association consumers spent on average RMB 10-15 on institutional foodservice in first-tier cities for lunch102

Companies that cater to private functions hotels and conferences are much more

likely to use imported products than those at the lower end of the market as

smaller family-run enterprises can often be extremely price sensitive

However with high-end restaurants and caterers often seen as market leaders

their use of imported food is being increasingly replicated by companies catering

to middle class consumers

102

httpwwwjiemiancomarticle328197html

42

44 E-Commerce Channel

Total Sales Value of E-Commerce

According to PWC Chinarsquos retail market is shifting from brick and mortar stores

to e-commerce platforms 103

Online shopping is becoming increasingly popular in China as Chinese consumers

purchase products during their daily commutes Furthermore Internet usage is

expected to reach 850 million users by the end of 2015104 According to the China

Internet Network Information Centre (CNNIC) the number of Chinese e-shoppers

reached 361 million at the end of 2014 the majority of endashshoppers were aged

between 20-29 years E-shoppers in this age group increased by 239 year-on

year E-shoppers between 10-20 years old increased by 104 and over 50s increased by 332 since 2013 105

China has the worlds largest online retail market with total revenue expected to

reach RMB 31 trillion in 2014 according to data from the China Council for the

Promotion of International Trade (CCPIT)

According to the statistics from the Department of Commerce the total value of

cross-border e-commerce transactions reached RMB 31 trillion in 2013 counting

121 of the total import-export value The total sales volume in e-commerce for

retails in 2014 was USD 4262 billion106 According to the statistics from China

Electronic Business Research Centre sales of fresh food in 2014 in China reached

RMB 26 billion107

Main Platforms for E-Commerce

In September 2014 Kantar Retail published the Chinese Most Competitive E-

commerce Platforms 2014 report Jingdong ranked first due to its improved

product combinations logistics system and high website visitor volume

Tmallcom came in second due to its developed marketing mobile client

management and data analysis while Yihaodian ranked the third 108

Taobao Tmall Jingdong Yihaodian are the leading online stores

Taobao is a Consumer-to-Consumer (C2C) platform established in 2003 by

Alibaba one of the largest online companies in China Companiesindividuals

can set up stores on Taobao and are typically small in size Customers can buy various products on Taobao from clothing to food products

Tmall formerly Taobao Mall is a Business-to-Consumer (B2C) platform and

serves more than 500 million customers 109 In 2014 its total Gross

Merchandise Volume (GMV) reached RMB 135 billion110According to Alexa a

company that provides analysis into internet traffic as of the 30 days

103

httpwwwpwccncomwebmediadoc635593364676310538_rc_outlook_201516pdf 104

httpnewssinacomcno2014-11-20083531174378shtml 105

httpitsohucom20150203n408393760shtml 106

httpnewscnfolcomit2015010919879264shtml 107

http36krcomp5035527html 108

httpwwwlinkshopcomcnwebarchives2014301412shtml 109

httpbaikebaiducomlinkurl=jiiNJ-8tZPY1bBTj7xoodTbQGbGh4cy-

PUrcKoTKAUWNycSYweUpy_8VlUljkVG4W2V3DTWJMMdig5tn6fk2etyHJupYpNF9UK7mQdOgjr5T9KFGjhMh4QaHQqVolFDV7PNojtbRNmipb2w9WXFjXa 110

httptechsinacomcni2014-06-1619059439636shtml

43

preceding 12th November 2015 Tmallcom was the 28th most visited website

globally and the 6th most visited site in China111 Tmall currently has a UK pavilion open to products from the UK 112

Jingdong also known as JDcom is an online direct sales company in China

with a market share of 563 in the first quarter of 2015 Its market

transaction value reached RMB 2602 billion with net revenue of RMB 115

billion in 2014 As of June 2015 JDcom had seven logistics centers 166

warehouses in 44 cities and 4142 delivery stations and pickup stations in China113

Yihaodian is a B2C e-commerce platform providing over eight million Stock

Keeping Units (SKUs) with a wide range of categories including food amp

beverage alcohol drinks imported food cosmetics personal care cleaning

electronics and clothing It has nearly 90 million registered users and 36

million mobile users Yihaodian also built operation centers in Beijing

Shanghai Guangzhou Wuhan Chengdu and Quanzhou 114 In mid-2015

Walmart bought out its joint-venture partner to take 100 ownership of Yihaodian115

WoMai was established by China National Cereals Oils and Foodstuff

Corporation (COFCO) a state-owned company It sells COFCO food products

as well as sourcing other brands from China and overseas Products sold on

the platform come from more than 30 countries and regions and fresh

products including seafood and import food account for more than 35 of its

product catalogue116

In addition to the above e-commerce platforms the following platforms also sell

seafood

Shengxian Guan

Suxiansheng

Yiguo

Meituan

SF Selection

Ewanjia

Tootoo

Yonghui Superstores

Benlai

Zhenyu

Quannonghui

Meishi Sudi

Xiandu Shangcheng

111

httpwwwalexacomsiteinfotmallcom 112

httpswwwtmallhkwhtmallimportactguojia-

gbspm=a2231778674781817479816hn6jjhampacm=lb-zebra-21104-41085410038505246ampscm=10038lb-zebra-21104-410854ITEM_14466129317076_505246 113

httpwwwjdcomintroaboutaspx 114

httpcmsyhdcomcmsviewdotopicId=24183amptp=112001KyfyIpR-00-kKYB 115

httpswwwtechinasiacomwalmart-yihaodian-china-reorganize-spinoffs 116

httpdzswsmofcomgovcnanlidetal_17html

44

45 Shanghai Free Trade Zone117

The China-Shanghai Pilot Free Trade Zone (Shanghai FTZ) was established in

September 2013 The Shanghai FTZ provides a number of opportunities for

exporters of products to China Currently there are two models in operation the

lsquodirect mail modelrsquo (cross-border online business model) and the lsquoFTZ modelrsquo

The direct mail model allows products ordered online to be delivered from

overseas The FTZ model allows products to be stored in the free trade zone with

a bonded status and delivered from the FTZ

According to United States Department of Agriculturersquos (USDArsquos) China 2014

Retail report using the cross-border model allows Chinese consumers to access

products not otherwise available in China as well as lowering costs For example

the import VAT (17) for the majority of food and beverages is waived and

instead a 10 customs duty is charged Furthermore duties under RMB 50 are waived118

It is important to be aware that all products on cross-border platforms such as Kuajingtong 119 should meet all the requirements set by Chinese regulations

including labelling certification and registration standards

Seafood sales

Waigaoqiao Directly Imported Goods Market (DIG) has attracted great interest

from local residents interested in purchasing imported goods Its imported

products are directly imported from overseas It is expected that several other

DIG style markets will open in the near future and DIG markets are expected to

expand nationwide

In 2015 DIG expanded to a dozen stores in Shanghai that offer a diverse

selection of seafood According to the Shanghai fisheries association

consumption of imported seafood in Shanghai reached RMB 180 million during

Spring Festival (February 28-24) in 2015 During the week long Spring Festival

celebration DIG sold RMB 283 million 158 of the whole seafood sales while

speciality stores at high-end shopping malls high-end supermarkets online

selling and wholesale accounted for RMB 40 million RMB 50 million and RMB 60

million and 223 278 and 334 for the whole sales value respectively 120

The Shanghai Linghai International Agricultural Product Trading Center located

next to the Shanghai FTZ is currently under construction and is expected to open

in 2016 After its opening it will be an international seafood trading centre with

some of the most modern technological facilities and most advanced

management systems121

117

httpwwwcbbcorgsectorsshanghai-ftz 118

httpgainfasusdagovRecent20GAIN20PublicationsRetail20Foods_Chengdu20ATOhttp

wwwkjtcom_China20-20Peoples20Republic20of_12-31-2014pdf 119

httpwwwkjtcom 120

httpwwwshuichanccnews_view-237241html 121

httpwwwshchinanewscomnews20141208242355html

45

Trading Platforms amp Service

Kuajingtong is an authorised cross-border online business platform Some key

features of Kuajingtong include

Price and customs duty are clearly indicated to customers on Kuajingtongrsquos

website and are displayed separately for customersrsquo reference

Products are usually sold at a lower price as most imported products bought

into the Shanghai FTZ are subject to a blended tariff rate called ldquotariff for

personal articlesrdquo rather than normal import tariffs imposed on goods

imported into non-FTZ parts of China under regular trade tariffs ndash 100

200 300 and 500 most food is subject to the 100 rate while

most alcoholic spirits are subject to the 500 rate122

Kuajingtong also ensures speedy delivery of goods and ease of payment via

its online service as products under the lsquoFTZ modelrsquo are bonded in the

Shanghai FTZ and pass customs clearance upon order and products under

lsquodirect mail modelrsquo also enjoy simplified customs clearance procedure123

Since its establishment in 2013 Kuajingtong has introduced more than 500

product types including bags cosmetics food and infant products Its suppliers

include Hyundai Department Store New Tao Janesce and Sunland 124

Kuajingtong added the Shanghai FTZ model to its business processes which

could improve efficiency of after-sales services as products can be returned or

changed in China without shipping back to the port of origin 125

Amazon signed a Memorandum of Understanding with the Shanghai FTZ

authorities on 20th August 2014 announcing a move to provide a cross border e-

commerce platform allowing it greater access to Chinese customers The new

platform will be able to provide products at the same price as those on Amazonrsquos

overseas websites with only the addition of logistics and customs duties for

personal articles Amazon also plans to set up its own logistics warehouse inside

the Shanghai FTZ126

DIG offers frozen seafood meat and fresh fruit directly imported from overseas

Goods displayed in DIG already have duty paid on display DIG adopts a

membership system but without a membership fee Products from overseas

suppliers can be stocked in DIG by signing a service contract with the operator127

Shenlan Bonded Exhibition Centre provides a bonded status for exhibition and

sales of imported products The link between ldquobonded storagerdquo inside the

Shanghai FTZ and ldquophysical storesrdquo in Shenlan next to the Shanghai FTZ provides

flexibility of storage exhibition and sales opportunities for suppliers At the time

products are sold payment will automatically be split into two parts the first

payment for the products goes directly into the retailerrsquos account and the second

payment for the productsrsquo customs duty goes to a China Customs bank account

If imported products cannot achieve sales targets after exhibition in Shenlan

unsold products can be returned to the Shanghai FTZ within three months for re-

export or stored in the zone until appropriate sales channels can be found

122

httpwww360doccomcontent131120111141630_330718608shtml 123

httpwwwkjtcomhelpcontent207 124

httpwwwynfzbcnkmpjZhenYuShouXieDiaoYong192488shtml 125

httpwwwmofcomgovcnarticleresumen20131220131200444420shtml 126

httpmoney163com14082016A43STDTH002526O3html 127

httpshwinshangcomnews-503894html

46

46 Key Regulations and Tariffs

Registration of Food and Drink Exporters

From 1st October 2012 food and beverage exporters to China are required to

register through the General Administration of Quality Supervision Inspection

and Quarantine (ldquoAQSIQrdquo) Registration can also be done through import

companies Both options can be accessed through httpireeciqcn guidance is

available in both English and Chinese

Certification amp Registration

For products of plant or animal origin the Chinese government requires

certification by a UK Government authority The UK currently has three Export

Health Certificates (EHC)128 available as of November 2015

o 7432EHC for live aquatic animals excluding Bi-Valve molluscs for

human consumption

o 469EHC for live aquatic Bi-Valve molluscs only-for human consumption

o 7208EHC for fishery products for human consumption

CBBC recommends that companies wishing to export their products to China

contact their local Animal and Plant Health Agency in the UK to identify what

EHCrsquos are required and the procedures required to receive the relevant EHC129

Processing plant registration with Certification and Accreditation Administration of

Peoplersquos Republic of China (ldquoCNCArdquo) has been required since 1st May 2013 All UK

companies wishing to export fishery products to China must be registered For

both live and non-live products exporters must provide full and correct details of

all facilities involved in the production process including processing plants freezer

vessels transportation vessels factory vessels and cold stores

To register these facilities companies must submit information to Animal Health

amp Veterinary Laboratory Agency (ldquoAHVLArdquo) in Carlisle or to DARD All UK fishery

product companies that are approved in compliance with EU Food Hygiene Law

can be listed

If an exporter has already registered a production plant with AQSIQ via DEFRA

(on any of the lsquoETrsquo forms) it is not necessary to re-send information about Official

Inspectors

Standard documentation required when exporting to China

The table below shows the required UK-generated export documents that are

required for each shipment by Customs and Excise in the Chinese port of entry

Original documents must be signed stamped and couriered to China (though the

Bill of Lading may be sent electronically) to arrive one week before the expected

shipment

128httpswwwgovukgovernmentuploadssystemuploadsattachment_datafile472444ehc-listpdf 129 httpswwwgovukgovernmentorganisationsanimal-and-plant-health-agencyaboutaccess-and-openingapha-headquarters

47

Table 7 Documentation Required by UK Exporting Companies

Document Original with

Signature amp Stamp Copies Prepare amp Issued By

Commercial Invoice 3x 2x UK Foodbeverage company

Packing List 3x 2x UK Foodbeverage company

Export Health Certificate (see notes on

certification)

1x 1x Local authority

Certificate of fumigation

wood pallets (or use individually-stamped pallets)

1X 1X UK Foodbeverage company

BuyerSeller Agreement signed by both parties (requested at some

ports)

3x 2x UK Foodbeverage company

Bill of Lading 3x 2x UK shipping agent

Certificate of Origin (EU Certificate issued by local Chamber of Commerce)

1x 1x UK shipping agent

It is worth verifying with Chinese partners or importers the exact requirements

for the specific Chinese port of entry that will be used for shipments On

occasions some companies have also been asked to include a lsquoSales Certificatersquo

or similar In such cases companies have supplied a Certificate of Free Sale

issued by the Rural Payments Agency (ldquoRPArdquo) Companies should be aware that

regulations in China can change and the interpretation thereof by individual

officials may not be consistent across all entry ports

Tariffs

Tariffs for UK aquatic exports to China are subject to Most Favoured Nation rates

To receive these rates a UK exporter must present a certificate of UK origin

during the customs clearance process

Tariffs vary according to products Details can be found in these links

httpwwwqgtongcomhgszShowArticleaspArticleID=11867

httpwwwaptmaorgpkchina_customs_tariff_2011pdf

Value-added tax is applied to all products entering the market from abroad The

VAT rate is 130 for unprocessed unpacked agricultural products and 170 for

processed packaged food

48

Food Labelling

Since joining the World Trade Organisation (ldquoWTOrdquo) in December 2001 China has

introduced or modified hundreds of food and agricultural related regulations and

standards These have included changes in food laws labelling requirements

packaging and container requirements food additive regulations multiple

commodity regulations commodity specific regulations and specific procedures

Below are the key regulations which should be met by products which are

imported into China

Food and Beverage Labelling Regulations in China

To comply with Chinarsquos food labelling regulations all imported foods and

beverages have to have a label often white in colour attached to individual

bottles cans or packets in simplified Chinese as used in mainland China Labels

must be approved by the China Entry-Exit Inspection and Quarantine Bureau (ldquoCQISrdquo) The regulation requests products to be labelled before shipping but as

this is difficult to carry out CQIS allows labelling to take place in bonded

warehouses in China

The following is the minimum requirement of information to be listed

Standard name of foodstuffs

List of ingredients as percentages in descending order of content net

weight and volume of each

Name and address of manufacturer and local agent or distributor

Production date best before end date and guidance for storage

Country of origin

Quality grade

Code of national standard or industrial standard or enterprise standard

for the production

Special contents if there are any (eg irradiated food)

The quality grade of a pre-packaged product is an optional extra to be included

on the label 130

On the label ingredients such as herbs or sugar must state specific types Label

verification from CQIS usually takes one to two weeks This process is generally

handled in conjunction with the importer or distributor due to language issues

and the need for cooperation with CQIS

New Food Safety Law

China has updated its Food Safety Law has been effective since 1st October 2015

The policy affects ingredients testing methods manufacturing contact

substances packaging and nutrition labelling131

Two important regulations including a ldquoFood Traceability Systemrdquo and ldquoSystem of

Real Namerdquo have been established and allow consumers to require a ldquocontinuous

compensationrdquo

130 httpwwwjlwsjdgovcnclassshowaspid=8252 131 httpwwwforbescomsitesjohnbalzano20150308issues-on-the-horizon-for-chinese-food-safety-law-in-2015

49

According to the 62nd article132 the providers of an online food trading third party

platform should establish a ldquoreal namerdquo record for all food business operators that

agree to join the continuous compensation network and clearly define their

responsibility for food safety management all business operators should be

qualified with permit licenses and the permit license should be examined by

trading third party platform

According to the article if the providers of the online food trading third party

platform find that the food business operators violate the regulations of this

article they should restrict the companiesrsquo operations on the platform and report

it to the China Food and Drug Administration (CFDA) If the violations are serious

the online third party trading platform service should not provide services to

violators

According to the 131st article if the providers of the online food trading third

party platform do not implement their duty of establishing the lsquoreal namersquo record

exam the permit licenses report illegal business operations or limit the online

trading platform service to the violators they will be fined have all their earnings

confiscated and be penalised RMB 50000-200000 by the CFDA

If serious offences are committed providers of the platform will be forced to

terminate business and their business licenses may be revoked If the legal rights

of the consumers are violated providers of the platofrm should take on joint

responsibility with the food business operators If the providers of the online food

trading third party platform fail to provide reliable and traceable details of the

real name address and contact for the food business operators the

compensation for losses suffered by effected l consumers should be paid by the

online food trading third party platform

Having required compensation from the online food trading third party platform

consumers can ask for compensation from the food business operators or the

food manufacturers133

Chinese Organic Standards

In 2014 the Chinese Government implemented its new organic standards The

regulation is divided into seven parts

General principles

Certification implementation

Organic food importation

Certification license and label

Supervision

Punishment

Supplementary articles

The regulations are jointly issued by the Standardization Administration of China

(ldquoSACrdquo) and AQSIQ

132 httpwwwgovcnxinwen2015-0425content_2852919htm 133 httpnewssohucom20150925n422059368shtml

50

Some key points relating to labelling of organic products are as follows

The use of lsquoorganicrsquo and the mark of China Organic Product Certification

can only be used for products produced and processed according to

Chinarsquos organic standards unless the use of lsquoorganicrsquo is unrelated to the

production process and practices

Imported products without Chinese organic product certification cannot

use the organic production certification label

Each organic product labels will have its own authentication code so as to

trace the certification license manufacturers and processing agents

Although a product may be certified organic in its home country or in other

markets it will not be allowed to use the term lsquoorganicrsquo on its packaging unless it

receives the Chinese certification

In 2013 the National Standards for Organic Products were modified The new

standard and its implementation came into effect on 1st April 2014134

Major changes in the new implementation rules of Chinese Organic Standards

with reference to the fish industry include

Zero-tolerance of residues

If products come from a cooperative group from different farms each

farm needs to be inspected

Once a product receives the organic certification it will be assigned an

authentication code which consumers can use to check whether the

product is truly certified organic Each SKU will have a code

This law was previously in place but inconsistently enforced There has been an

indication of stricter implementation of the regulation since November 2011 such

as some companies being told to remove the English term lsquoorganicrsquo from their

labels

Enforcement of the regulations is complicated and several agencies are involved

At the port of entry the CIQ (China Entry-Exit Inspection And Quarantine Bureau

local authority of AQSIQ) is responsible for stopping products marked lsquoorganicrsquo

without Chinese organic certification In such an incident the importer will be

required to mark off or remove the organic seal or any other words or references

After importation the local Business Bureau can remove products that not meet

standards or rules

134 httpwwwaqsiqgovcnxxgk_13386jlgg_12538zjl2013201311t20131120_387865htm httpxxgkjingjianggovcnxxgkjcms_filesjcms1web27siteart201584art_2649_29656html httpnewsxinmincndomestic2015092828662382html

51

Cost of Certification

Certification costs can vary as cost is determined by the process of inspection ndash

either by documentation or field tests If a variety of lab tests are required it will

increase the cost of certification As of the 1st July 2013 a standardised

accreditation fee for organic seafood was introduced for first time registration135

Product Farming

Accreditation

Processing

Accreditation

Factors affecting the price

Fish and freshwater

aquaculture seafood

RMB 17000 RMB 10000 Basic aquaculture area 500 mu costs

RMB 3000 RMB

500 mu per extra mu

RMB 3000 for extra item

(seafood)

Seawater

aquaculture seafood

RMB 20000 RMB 10000 Basic aquaculture area 100 mu costs

RMB 3000

RMB 100 per extra mu

RMB 3000 =for extra item(seafood)

Fishing in open

reservoir

RMB 17000 RMB 10000 Basic aquaculture area 5000 mu costs

RMB 3000 per extra 5000 mu

RMB 3000 per extra item(seafood)

In addition to this cost companies wishing to seek organic certification will have

to pay for the travel and accommodation of Chinese inspectors to inspect their

suitability

Organic certification needs to be renewed each year However fees are reduced

by nearly a third during the re-certification procedure

135

httpwwwdoc88comp-9089017635036html

52

47 Tips and Useful Links

Investors and importers in China should be aware of the diversity within the

country China is not a single market but a mixture of small markets separated by

geography culture cuisine demographics and dialects Due to this diversity

there is no single fool-proof method for achieving success in China but there are

however some basic ways to improve the chances of success

Build Relationships

While Chinarsquos legal system has seen improvement over recent years it remains

at times inconsistent and is still dependent on personal contacts and influence

(referred to as lsquoguanxirsquo) Establishing a strong network in China is of the utmost

importance for any company seriously considering investing in the country and

will be invaluable if any future disputes arise

Find a local partner andor distributor

The success of an exporter is often dependent on their local partners Building

relationships with distributors and suppliers can often be the fastest way to

success as it allows exporters to tap into pre-existing networks For larger

companies and companies with a long-term commitment to China establishing a

representative office or a joint venture partnership may be worthwhile

considering after initial testing of the market

Be flexible

China is unpredictable and things can change very quickly CBBC recommends

keeping an open mind and being flexible so as to take advantage of any

opportunities as they arise

Do your research

Even if a product is successful in one country there is no guarantee it will be so

in another The same is true for provinces within China CBBC advises avoiding

hinging success on targeting one niche of consumers and companies should

expect to adjust marketing strategies quickly to target new consumer groups

Ultimately the best way to predict the success of a product is to do thorough

research and to test your products directly CBBC would be pleased to assist UK

seafood exports to conduct further research if required

Tailor your products

Chinese consumers have different demands and tastes from those elsewhere Be

prepared to adjust products to suit their expectations Packaging particularly if

the products are often sold as gifts is very important and has quite well

established conventions Labelling and flavours are other areas where

inexperienced or careless exporters can come encounter difficulties

UK exports can find more useful information on doing business in China on

CBBCrsquos website httpwwwcbbcorghandbook

53

Leading Trade Organisations

China Society of Fisheries

wwwcsfishorgcn

The China Society of Fisheries (ldquoCSFrdquo) is a national organisation under the MOA

which provides market information and advisory services to producers and

processors CSF also works with exporters associations from other countries to

promote seafood in China through workshops and conferences in China

China Aquatic Products Marketing and Processing Association

wwwcappmaorg

China Aquatic Products Marketing and Processing Association (CAPPMA) was

founded in 1994 as a national non-profit organisation directed under the Ministry

of Agriculture (MOA) CAPPMA consists of seafood producers processors

distributors suppliers and institutions for fisheries research and education as

well as relevant social entities that provide various services for seafood

processing and marketing

China Chamber of Commerce of Import and Export of Foodstuffs Native

Produce and Animal By-Products

wwwcccfnaorgcn

The China Chamber of Commerce of Import and Export of Foodstuffs Native

Produce and Animal By-Products (CCCFNA) is the national organisation under the

Ministry of Commerce (MOFCOM) for importers and exporters Its meat and

aquatic products division works with processors and importers in the market to

promote the import and export of seafood and meat products

China Fisheries Association

wwwchina-cfaorg

The China Fisheries Association is a national organisation of fish industries with

1000 members from the sectors of production farming operation processing

and machinery

54

Key Trade shows in China

The 8th Shanghai International Fisheries amp Seafood Exposition

Dates 25th-27th August 2016

Venue Shanghai New International Expo Centre

Website wwwsifsecom

China Seafood Expo is one of Chinarsquos leading annual trade shows focusing on the

seafood sector

SIAL

Dates5th-7th May 2016

Venue Shanghai New International Exhibition Centre

Website wwwsialchinacom

SIAL is one of Chinarsquos largest food amp beverage shows with over 2000 exhibitors

from over 40 countries

Seafood Expo Asia

Dates 6th-8th September 2016

Venue Hong Kong Convention amp Exhibition Centre Website httpwwwseafoodexpocomasiaen

Seafood Expo Asia is a premium seafood marketplace for Asia

20th China Fisheries amp Seafood Expo

Dates 2th-4th November 2016

Venue Qingdao International Expo Center

Website wwwchinaseafoodexpocom

China Fisheries amp Seafood Exposition is currently the biggest fishery and seafood

trade show in Asia

Food amp Hospitality China (FHC)

Dates TBC

Venue TBC Shanghai

Website httpwwwfhcchinacomenindexasp

FHC is one of Chinarsquos largest food and beverage exhibitions In November 2015

over 70 UK companies exhibited at FHC

55

48 Seafood Distributors in China

No Product

Type Companyrsquos Name in Chinese

Companyrsquos Name in English

Telephone Location

1 Fresh or Chilled Salmon

上海澳班贸易

有限公司

Shanghai Aoban Trade

021-68852509 66397992

Baoshan District Shanghai

2 Fresh or Chilled Salmon

上海倍雄贸易

有限公司

Shanghai Beixiong Trade

021-62989406 Pudong District Shanghai

3 Fresh or Chilled Salmon

上海海之兴进

出口贸易有限

公司

Haizhixing Seafood 021-62688405 62681692

Changning District Shanghai

4 Fresh or Chilled Salmon

澳洋食品(日照

)有限公司

Aoyang Food NA NA

5 Fresh or Chilled Salmon

深圳市和顺隆

进出口贸易有

限公司

Shenzhen Heshunlong ExportampImport

0755-26924311 Nanshan District Shenzhen

6 Fresh or Chilled Salmon

惠州市祥正水

产品贸易有限

公司

Huizhou Xiangzheng 0752-5566127 Huizhou City

7 Fresh or Chilled Salmon

深圳市海事昌

进出口有限公

司

Shenzhen Haishichang ExportampImport

0755-25887300 Luohu District Shenzhen

8 Fresh or Chilled Salmon

北京东隆联合

国际贸易有限

公司

Beijing Donglong United

010-67187583 51227726

Chongwen District Beijing

9 Fresh or Chilled Salmon

深圳市业高进

出口有限公司

Shenzhen Yegao Import amp Export

15989585573 Luohu District Shenzhen

10 Fresh or Chilled Salmon

北京东隆联合

国际贸易有限

公司

Beijing Donglong Unite International Trade

010-67187583 51227726 13811088888

Chongwen District Beijing

11 Fresh or Chilled Salmon

上海纯尔贸易

发展有限公司

Shanghai Chuner Trade

021-56947899 13386127923

Changshou Road Shanghai

12 Fresh or Chilled Salmon

广州纯尔贸易

有限公司

Guangzhou Chuner Trade

020-81258733 Tianhe District Guangzhou

13 Fresh or Chilled Salmon

上海航吉进出

口有限公司

Shanghai Hangji Import amp Export

021-50961380 Pudong New District Shanghai

14 Fresh or Chilled Salmon

深圳市盈运达

贸易有限公司

Shenzhen Yinyunda Trade

0755-82410005 82410005

Futian District Shanghai

15 Atlantic Smoked Salmon

上海豫宙国际

贸易有限公司

Shanghai Yu Global 021-53085889 Huangpu District Shanghai

16 Atlantic Smoked Salmon

上海西郊福斯

特国际贸易有

限公司

Shanghai Xijiao Foster 021-67654685 Qingpu District Shanghai

17 Atlantic Smoked Salmon

上海涵德物流

有限公司

Shanghai Hande Logistics

021-50464935

Waigaoqiao Free Trade Zone Shanghai

18 Atlantic Smoked Salmon

上海纯尔贸易

发展有限公司

Shanghai Chuner Trade

021-56947899 Changshou Road Shanghai

19 Atlantic Smoked Salmon

上海迅天国际

贸易有限公司

Shanghai Xuntian International

021-54134911 Baoshan District Shanghai

20 Atlantic Smoked Salmon

深圳市南北进

出口贸易有限

公司

Shenzhen Nanbei ImportampExport

0755-82140783 82140685

Luohu District Shenzhen

56

21 Frozen Mackerel

大连毅都集发

冷藏物流有限

公司

Yi Du Ji Fa Cold Storage logistics

0411-87595788 Bonded Logistic Park Dalian

22 Frozen Mackerel

大连新中海产

食品有限公司

Dalian Shinzhong 0411-87608554 Ganjingzi District Dalian

23 Frozen Mackerel

山东东方海洋

科技股份有限

公司

Shandong Oriental Ocean Group

0535-6729999 Binhai North Road Yantai Shandong

24 Frozen Mackerel

大连远洋渔业

国际贸易公司

Dalian Pelagic Fishing International

0411-87126163 8760052087125634

Ganjingzi District Dalian

25 Frozen Mackerel

烟台鑫通食品

有限公司

Yantai Xintong Food 0535-6805318 6805318

Zhifu District Yantai Shandong

26 Frozen Mackerel

烟台裕源水产

食品有限公司

Yantai Yuyuan Aquatic Food

0535-6815581 6803441

Zhifu District Yantai Shandong

27 Frozen Mackerel

烟台山海食品

有限公司

Yantai Shanhai Food 0535-6728707 6908281

Yantai High-tec Industrial Zone

28 Frozen Mackerel

龙口市松青食

品有限公司

Longkou Shi Songqing Food

0535-8811431 8811431

Longkou Yantai Shandong

29 Frozen Mackerel

烟台海裕食品

有限公司

Yantai Haiyu Foods 0535-6802237 6802935

Zhifu District Yantai Shandong

30 Frozen Mackerel

青岛怡之航冷

藏有限公司

Eimskip 0532-86947977 South District Qingdao Shandong

31 Frozen Blue Whiting

龙口市万顺昌

水产食品有限

公司

LongKou Wanshunchang Aquatic Food

0535-8751999 8751999

Longkou Shandong

32 Frozen Blue Whiting

荣成市宝峰食

品有限公司

Rongcheng Baofeng Food

0631-7672877 13806312262

Rongcheng Weihai Shandong

33 Frozen Blue Whiting

青岛德立泰贸

易有限公司

Qingdao Delitai Trade 0532-85844633 South District Qingdao

34 Frozen Blue Whiting

威海东源食品

有限公司

Weihai Dongyuan Food

0631-5928400 5928401

Weihai Shandong

35 Frozen Blue Whiting

荣成丰荣水产

食品有限公司

Rongcheng Fengrong Food

00631-7451861 13963128852

Rongcheng Weihai Shandong

36 Frozen Blue Whiting

龙口润生食品

有限公司

Longkou Runsheng Food

0535-8635178 Longkou Shandong

37 Frozen Blue

Whiting

龙口佳宝水产

食品有限公司

Jiabao 0535-8762280

8762282

Longkou

Shandong

38 Frozen Blue Whiting

荣成康乐水产

食品有限公司

Rongcheng Kangle Aquatic Foods

0631-7575606 7527088

Rongcheng Shandong

39 Frozen Blue Whiting

大连杰顺水产

品有限公司

Dalian Jieshun Aquatic 0411-86202069 86358730 15904115960

Dalian Liaoning

40 Frozen Blue Whiting

青岛筑地水产

有限公司

Qingdao Tsukiji Suisan

0532-8661059286610588

JiaonanQingdao Shandoong

41 Frozen Langoustine

青岛坦福食品

有限公司

Qingdao Tanfu Foods 0532-87755128 87755128

Chengyang District Qingdao

42 Frozen Langoustine

上海辰冠进出

口有限公司

Shanghai Chenguan Import and Export

021-33130888 Pudong New District of Shanghai

43 Frozen Langoustine

青岛康宝食品

有限公司

Qingdao Kangbao Food

0532-88265718 8261206

Jiaozhou Qingdao

44 Frozen Langoustine

大连华联食品

有限公司

Hulian Foods 0411-89466846 Zhuanghe Dalian Liaoning

45 Other Frozen Crab

大连天宝绿色

食品股份有限

公司

Dalian Tianbao Green Foods

0411-39330101 82801858

Jinzhou Dalian Liaoning

46 Other Frozen Crab

上海皆战达贸

易有限公司

Drive Best International Co Ltd

021-5635849856358494

Putuo District Shanghai

47 Other Frozen Crab

大连九阳食品

有限公司

Dalian Sunshine Fooods

0411-87606611 Ganjingzi Dalian Liaoning

48 Other 山东东方海洋 Shandong Oriental 0535-6729999 Binhai North Road

57

Frozen Crab 科技股份有限

公司

Ocean Sci-Tec Co Ltd Yantai Shandong

49 Non-frozen Lobster

上海鱼盟国际

贸易有限公司

Fish Union International Trading Limited

02156556779 Hengfeng Northe Road Shanghai

50 Non-frozen Lobster

北京亚润良品

海洋商贸有限

公司

Beijing Ya Run Liang Pin Trading

010-5169266281682330

Mentougou District Beijing

51 Non-frozen Lobster

深圳市怡亚通

供应链股份有

限公司

Eternal Asia 0755-88392996 83663858

Futian District Beijing

52 Non-frozen Lobster

顺景发国际贸

易(北京)有限

公司

Shun Jing Fa International Trade

010-58761888 Chaoyang District Beijing

53 Non-frozen Crab

上海柔康进出

口有限公司

Shanghai Roukang Import amp Export

021-58231047 Nanhui District Shanghai

54 Non-frozen Crab

广州市裕又沣

贸易有限公司

Yu You Feng Trading 020-36228226 13922299908

Baiyun District Guangzhou

55 Non-frozen Crab

上海瑞格国际

贸易有限公司

Shanghai Ruige International Trade

021-55970166 Yang Shu Pu Road Shanghai

56 Non-frozen Crab

上海鱼盟国际

贸易有限公司

Fish Union International Trading Limited

021-56556779 Hengbei North Road Shanghai

57 Live Oyster 北京亚润良品

海洋商贸有限

公司

Beijing Ya Run Liang Trading

010-51692662 81682330

Mentougou District Beijing

58 Live Oyster 广州满恒进出

口有限公司

Shanghai Ruige International Trade

020-38395310 Tianhe District Guangzhou

59 Live Oyster 广东深域物流

有限公司

Guangdong Shenyu

Logistics

020-83637688

83637688

Yuexiu District

Beijing

60 Live Oyster 广州振华进出

口有限公司

Guangzhou Zhenhua Import amp Export

020-37600706 83595775

Yuexiu District Beijing

58

5 CBBC RECOMMENDATIONS AND NEXT STEPS

CBBC recommends that companies interested in exporting to China review this

report in order to understand the Chinese market

Understanding the Market in China

Chinarsquos rapid population growth urbanisation personal income growth and

middle class development have brought about an increase in seafood

consumption According the Food and Agriculture Organisation (FAO) the

average consumption of seafood is estimated to reach 359kgcapita by 2020

twice that recorded in 2011136

Although China is the largest producer of aquatic products in the world it still

imports aquatic products from other countries as consumers demand for

imported and high-end products is growing In order to best prepare for the

Chinese market CBBC recommends that UK exporters conduct thorough research to identify if there are opportunities for their products in China

Exploring More Channels

Exploring as many channels for product distribution as possible is an important

component to building a successful business in China CBBC recommends that the

companiesthat plan to export seafood products to the Chinese market should pay

attention to not only traditional channels but also to e-commerce platforms and

the Shanghai FTZ as they may provide opportunities for UK companies

Making Contact with Chinese distributors

Attending trade fairs contacting trade organisations and distributors may assist

with understanding the market increasing a companyrsquos presence as well as

increasing brand awareness

CBBC recommends that UK organisations seek to make contact with trade

organisations and distributors in order to take advantage of their member

companies and networking opportunities this will provide opportunities to

promote UK products and identify if there is a demand for their products to be

exported to China CBBC has provided a list of distributors in Section 48 and

trade organisations in Section 47 and would be pleased to facilitate introduction

andor meetings if required

If companies decide to visit China they should also visit

supermarketshypermarkets to identify what products are being sold and their

prices

Promotional Activities

There have been some successful cases in which companies promote their

products via sales promotions within supermarkets hotels and food festivals For

example the American Food Festival in autumn 2015 was used to successfully

promote US seafood in Ole a high end supermarket CBBC would be happy to

discuss what similar promotional opportunities exist for UK seafood producers

136

httpwwwdocincomp-445576975html

59

For example in 2015 CBBC arranged its Great British Brands Festival (GBBF)

across eight cities including Beijing Guangzhou Shenzhen Changsha

Chongqing Urumqi Changchun and Chengdu Each GBBF is a 10 day shopping

festival held in shopping centres It provides British companies with an

opportunity to showcase their products to Chinese consumers

In addition to promotions in physical stores CBBC recommends that companies

pay attention to promotional opportunities with e-commerce platforms e-

commerce platforms have become an important distribution channel for imported

seafood

Learning about the regulations and laws

Examining the local regulations and laws is always important for companies to

gain permission from the local government and avoid being blocked or blacklisted

by the government

Following the instructions in Section 46 to complete the registration procedure

and then paying attention to changes in food safety laws or food organic

standards will ensure that companies are on the right track

Chinese regulations can change quickly and therefore it is important to remain up

to date with all policy changes UK exporters should work with DEFRA and other

organisations to understand relevant polices as well as opportunities

For example since September 2014 China has banned the imports of whole

salmon Processed salmon however with fish without heads and gills can still be

imported China banned the imports of whole salmon from Norway due to

concerns regarding whole salmon containing Infectious Salmon Anaemia (ILAISA) virus and variants137 138

In March 2015 Norway and China agreed a new certificate formula resulting in

exports being maintained There is still a ban however on the imports of Salmon farmed in Sor-Trondelag Nordland and Troms139 140

Before entering the Chinese market CBBC strongly advises that companies take

steps to protect their Intellectual Property (IP) in China Furthermore before

committing significant financial resources to developing cooperation with a local

partner CBBC recommends that UK companies should conduct adequate due

diligence All UK companies should ensure they are familiar with their obligations

under the UK Bribery Act The UK Government is committed to implementing the

UN Guiding Principles on Business and Human Rights which set out the

responsibility of business to respect human rights CBBC advises all companies to

familiarise themselves with the UKrsquos National Action Plan which implements the

UNGPs for the UK and sets out expectations for business behaviour both in the UK

and overseas CBBC would be pleased to discuss the National Action Plan and

how it might apply to China with UK companies if required

137

httpwwwthelocalno20140908china-bans-norwegian-salmon 138

httpqiwensinacnsa=d173582t554v2129ampcid=1156ampoid=12mpampvt=4ampwm=4002dpoolhdpi=sc01 139

httpswwwundercurrentnewscom20150417norway-china-agree-on-salmon-trade-deal 140

httpnewssinacomcnc2015-03-24175431640322shtml

60

For further market information from Seafish please contact Malcolm Large e

MalcolmLargeseafishcouk

CBBC would be pleased to answer further questions in relation to the content of

this report

This report was produced by

Edwin Qiao

Project Manager

China-Britain Business Council Guangzhou Office

Tel + 86 (0)20 8883 2120 ext 802

Email edwinqiaocbbcorgcn

61

CBBC Services

Launchpad A flexible fast cost-effective and low risk means for you to explore

the opportunities across China working from CBBC offices

Representative Office CBBC can streamline the process of establishing a

representative office in China and provide you with support at every step

CBBC Employment Services Helping you plan for and identify key management

staff for your business in China Includes both a selection and advisory service

Chinese Business Culture Training Programme Provides your team with an

awareness of Chinese culture and guidance on how misunderstandings can arise

and be overcome Contact Charlotte Zhang for more information

Translation amp Interpreting Services Company Profiles and Business Cards can

all be translated into Chinese through this service and we will also arrange

qualified interpreters for companies visiting China

Visa Invitation Service Can secure a visa notification form which will enable

you to apply for a single double or multiple entry Business Visa for entry into

China

Company Check Services will carry out a company check on your behalf

through the local branch of SAIC (State Administration of Industry and

Commerce) This will provide basic key information about a company

Market Research amp Analysis including sector reports market initiatives

regulatory environment and market opportunities Contact the CBBC Research

team

Identification of Local Contacts from agents distributors suppliers and

potential partners Contact the CBBC team or speak to one of our China Business

Advisers

In-market Activities from meeting arrangements to event organisations from

workshops and seminars to promotional activities and product launches Contact

your closest CBBC office

Directory (Servicesamp Manufacturers Sectors) to help bring clients and

productservice providers together and to help raise the profile of our corporate

members amongst manufacturers exporters traders and investors

Sourcing from China Training Training to give an understanding of the

purchasing process from finding and approaching suppliers to receiving the

finished goods CBBC has developed a half day seminar