Covid restrictions and protective measures taken by the Chinese authorities can bring losses to exporters. In addition, this may become a driver for rising prices for grains and oilseeds, according to World of NAN with reference to Agroxxi.ru.
From January 1, 2022, the Chinese Customs Administration introduced new food safety rules, according to which all foreign manufacturers, processors must undergo special registration until the end of 2021 so that their goods can enter the Chinese market. However, instructions explaining how to obtain the necessary registration codes were not released until October. While the website for companies that are allowed to self-register appeared only in November.
In addition, in December, Chinese railways imposed restrictions on the acceptance of goods through railway border crossings. Such measures are associated, as the Chinese side explained, with a serious epidemiological situation due to the spread of COVID-19.
Alexandra Shnipova, Deputy Head of Management Consulting Practice at DELOVOY PROFIL Group, gave her expert opinion on this matter: “The high growth rates of the Chinese economy are making the country more and more attractive to foreign exporters. Competition among foreign suppliers is growing, and it is becoming increasingly difficult for them to increase their exports. Trade is complicated by restrictions imposed by the Chinese side. This leads to congestion in road, rail and maritime traffic. In addition, having entered the trade war, China is beginning to actively use non-tariff methods to provide more favorable conditions for its companies. If such restrictions continue, this will lead to an additional increase in prices for raw materials in the food markets.”
In recent years, China has been actively building up strategic stocks of basic food commodities, buying them on the world market, which pushes prices up. It can be expected that in the first half of the coming year, the Celestial Empire will continue buying grains and oilseeds, concentrating more than half of the world's food reserves in strategic warehouses, which will keep world prices high.