The announcement by the Chinese government on 1 January 2026 that it was imposing new import quota limits on imports of beef into China differs to the previous ban on imports of Australia’s exports of beef into China but could impose restraints on Australian beef exports and create additional pressure to complete a free trade agreement (FTA) with the European Union.
Even so, there remains a significant threat to Australian beef exports.
In 2020, China imposed $20 billion of trade sanctions imports of Australian goods into China as a political response against the (then) Morrison government with bans on barley, wine, lobster, timber, major beef exporters, timber and cotton. At that stage, China cited labelling and health certificate requirements as reasons for the beef bans and claimed biosecurity issues were the reason for the lobster, cotton, barley, and timber restrictions. However, it was largely accepted that the measures were a response to the call by former Prime Minister to an independent investigation into China’s role in the coronavirus pandemic.
The restrictions were progressively removed between 2023 and 2025 as the political relationship between China and Australia was perceived to have improved with the advent of the Albanese federal government. The restrictions were imposed notwithstanding the terms of the China – Australia Free Trade Agreement (ChAFTA).
The new measures will apply the higher tariff to imports over 2.7 tonnes of beef imported into China from any country compared to 2.9 million tonnes of beef imported into China in 2024. Australian exporters believe that it could reduce its exports by $1 billion a year and could confer priority on other countries such as Brazil which could act more quickly and have their exports in place before the quota takes effect.
The new measures impose 55% import duty on imports of beef from any country above the nominated quota to ostensibly protect local Chinese famers from significant imports from a range of major export nations including Argentia, Brazil and Australia. In this case, the basis for the new arrangements came after a 12-month investigation by Chinese authorities into the impact of higher beef imports and are intended to “safeguard” local production against being overwhelmed by such increased imports.
The imposition of “safeguard” measures is permitted by World Trade Organisation Agreements and by ChAFTA so long as certain procedures are followed. Several Australian Ministers (including the Prime Minister) have already expressed concerns, as have representatives of the beef exporting industry.
We can expect significant political and legal responses to the new measures. This could include action at the WTO action under ChAFTA which may yet to be resolved through negotiations. Importantly it places additional pressure on negotiations for the FTA with the EU as a new market for Australian beef exports.