With over 1.38 billion people, China is the most populous country in the world and the fifth-largest country by area. From a fish and seafood perspective, China is unique as it is the world’s leader in marine and inland fisheries as well as aquaculture production (e.g. shrimp and tilapia). The country’s seafood production is supported by 14,500 km of coastline bordered by the Yellow Sea and the Korea Bay in the north, the East China Sea in the center and the South China Sea and the Gulf of Tonkin to the south. In terms of fresh water, China is home to 196,000 km2 of inland waters and reservoirs, and 74,550 km2 of river area including the Yellow and Yangtze rivers. Despite this wealth of natural resources, domestic production is insufficient to meet China’s growing demand for fish and seafood from the growing number of middle-class households. As a result, China has become, as of 2014, a net importer of fish and seafood rather than being a net exporter. Part of the imports are processed and re-exported but an increasing share of the imports are sold to domestic markets. In an effort to meet demand, China has developed the largest distant water fishing fleet in the world and therewith goes beyond the traditional trade networks of solely import and export. To support these expanded networks, China has instituted a trade policy known as the Maritime Silk Road, which is a trade route by sea to match the ancient Silk Road trade route by land. The trade route seeks to encourage trade links between China and overseas partners for fish and seafood products.
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The Presidential Economic Adviser stated that the US is willing to negotiate trade agreements with China, but is at the same time ready to impose a new 10% tariff on Chinese products, including seafood.
The plan is to have more exports of Jamaican high-quality seafood, like the live lobster, to the Chinese market, and falls under the framework of the “Belt and Road” initiative.
This week, the FSIS will publish proposed rules to list Vietnam, China, and Thailand as three foreign countries qualified to export catfish to the US.
Click on the species and find out more about the species in China
Source: FAO (2018)
Capture fisheries production in China has shown consistent growth since 2003, with a 8.4% increase from 2012 to 2016. However, it is widely acknowledged this growth cannot be sustained. In fact, in 2014 China posted a year-on-year slight decline of 0.5% in inland capture fisheries (FAO). China's distant water fisheries have been nurtured to help increase fisheries landings and constitutes a fleet of 2,460 vessels which produced 2 MMT in landings in 2014. Aquaculture growth has
been more pronounced with production increasing 69.4% between 2005 and 2016 (FAO).
Future growth of aquaculture in China will be dependent on a number of issues. The most important issues are water quality and water allocation priorities; cost and availability of fishmeal; cost and availability of fishmeal alternatives (e.g. soy); and disease. Trade too becomes important as demand for traditional export products such as tilapia has decreased leaving the sector with an overcapacity. Additionally, negative foreign (and domestic) press has hounded the shrimp, tilapia and other aquaculture sectors with allegations of antibiotic abuses and food safety violations. For now, in acknowledgment of these issues, industry leaders have urged a shift in emphasis away from a growth/production based agenda to an agenda of quality and sustainability. Within this context, it is reasonable to expect a decline in overall sector growth.
Source: FAO (2018)
When China's fish and seafood production is divided by production type, the importance of and dependency upon the aquaculture sector becomes readily apparent. The ratio of cultured fish and seafood is 78% to 22% wild capture fish and seafood. Cultured freshwater fish contributes to approximately 39% of China’s total annual production. The vast majority of this are carp species (over 70%), which are consumed domestically. In 2014, production of carp in China was
roughly 22 million metric tonnes or 35% of total aquaculture production in China. Carp and tilapia was forecasted to grow around 5% per year globally through 2018, but this growth rate has been optimistic for tilapia given issues with disease and lack of export demand.
The marine capture fisheries account for 19% of total production and catch over 150 species, like anchovy, black scaper, chub mackerel, cuttlefish, octopus, scallops and squid. Scallops and squid are particularly important species for export. There are 51 fishing ports which record landings in China and 8 primary fishing provinces. Since 1985 China has been building a distant water fishing fleet to compensate for the gap between domestic demand and production of the domestic fleet.
Cultured crustaceans make up 5.2% total seafood production and include species like crab, crayfish and shrimp. The overwhelming production (95%) of crustaceans (along with finfish) is done in the Southern half of China in the Yangtze and Zhujiang river basins. Cultured aquatic plants account for 17.6% of total seafood production.
Source: Trade Map (2018), International Trade Centre, intracen.org
China is the world’s largest exporter of fish and seafood products, which were valued over US$ 20.4 billion in 2017. Japan is China’s greatest trading partner, followed by the United States, European Union followed by Hong Kong. The majority of exports are composed of fish fillets, prepared and preserved fish, crustaceans, molluscs and invertebrates and frozen fish. In addition to exporting domestically
produced fresh water and marine products, a large part of Chinese exports consist of re-processed products.
The ports of Dalian and Qingdao are important processing centers, especially for (white)fish, which is then exported as twice frozen fillets and other products such as blocks for further processing (breading). The advantage of Dalian and Qingdao has been a low labor cost, however this is changing rapidly in recent years as labor costs have risen significantly. Already, a major European whitefish company Esperson, has closed a plant in China and moved to a location in Vietnam. Other European companies are turning to what is now a competitive labor base in Eastern Europe. Due to the uncertainty of China's processing industry its ability to adapt to rising labor costs and other developments like the current political situation in the US, it can be expected that exports from Dalian and Qingdao to Europe and the US will decline in the coming years.
In the future, China's Maritime Silk Road policy will seek to strengthen trade ties with neighboring ASEAN countries. Also, additional infrastructure improvements such a rail service to Europe are now in service to promote trade. What's important to remember is trains and ships run in both directions, thus they are vital links to carry goods back into China. China became a net importer of fish and seafood in 2014, and imports are expected to increase further as China's population continues to grow.
Source: Trade Map (2018), International Trade Centre, intracen.org
By value, fish fillets contributed over one-fifth to the total export volume in 2017, with a value of US$ 4,404 billion. This figure is heavily driven by the processing of imported whitefish from Russia and the United States in Dalian and Qingdao as well as farmed tilapia in the south. Molluscs (primarily cuttlefish, scallops and squid) contributed just below 17% with a value of US$ 3,396 billion. Prepared and
preserved fish, crustaceans, molluscs and invertebrates contributed together 35%, frozen fish 13.3% and crustaceans 7.3%.
There are at least two important trends which will likely affect the Chinese export product composition in the future. First, the middle class in China is growing and will increase domestic demand for fish and seafood products. The increased demand will focus especially on high value species such as shrimp and tilapia resulting in less availability for exports. A second trend is rising labor costs in China. An increase in the cost of labor is causing the whitefish-processing sector to seek lower cost alternatives such as Vietnam and Eastern Europe. This will lead to a decrease in the imports into China and exports of whitefish from China destined for the US and Europe.
Last updated: 01/06/2018
| Species | Number of Farms | Total Volume (MT) |
|---|---|---|
| Tilapia | 6 | 11,437 |
| Species | Number of Farms | Total Volume (MT) |
|---|---|---|
| Tilapia | 99 | NA |
| Shrimp | 15 | NA |
| Species | Number of Farms | Total Volume (MT) |
|---|---|---|
| Shrimp | 1 | NA |
China scores 78 out of 190 on the World Bank its Doing Business In Index. This section will provide you with all up to date need to know information about trading and investing in seafood in China. The following topics are covered: click the links below to learn more!
The U.S. Soybean Export Council together with Auburn Univerisity and Wujiang Municipal Aquaculture Co. Ltd. (Wujiang) launched the Intensive Pond Aquaculture (IPA) initiative in China in 2013. This ongoing initiative involves the creation of intensive pond raceway systems, also known as a flow-through system. These raceways allow for greater stocking densities, as well as the removal and re-use of solid wastes associated with fed carp aquaculture.
The Responsible Aquaculture Foundation's mission is to deliver an innovative global knowledge transfer platform/mechanism to enable the responsible development of a sustainable global industry that can meet the demands for nutritious, safe aquaculture products. The Responsible Aquaculture Foundation has launched online courses for aqua-culturists in treating shrimp disease and water quality. All courses are available in English, courses in managing early mortality syndrome (EMS) at hatcheries and farms are available in Chinese.
The Hainan Tilapia Aquaculture Improvement Project was launched in 2007. The project is part of the Sustainable Fisheries Partnership and enjoys the support of the Sustainable Trade Initiative (IDH). The Hainan Sustainable Tilapia Alliance and the Code of Good Practice are outcomes of the AIP. The project is ongoing and is currently implementing the code at 35 pilot farms.
The iBAP program is a precursor to Best Aquaculture Practices (BAP) certification (the “i” representing “improver”). It’s an opportunity for aquaculture facilities to be recognized by the marketplace as they improve their practices. The iBAP program provides the encouragement and incentive necessary to apply for BAP certification. Facilities that enroll in the iBAP program receive the technical support required to apply for BAP certification and agree to a step-by-step, deadline-driven plan. As less than 10% of global aquaculture production is currently third-party certified, the iBAP program opens doors for retail, restaurant and hospitality chains to source more responsibly farmed seafood. There are currently 12 tilapia facilities in the iBAP program in China as part of the Sunnyvale farm group (a division of Zhanjiang Guolian Aquatic Products Co. Ltd.).
Initiated in 2012, by Sustainable Fisheries Partnership and the US based Beaver Street Fisheries, this FIP has blossomed into a multi-stakeholder platform which includes the Asia Pacific Squid Supply Chain Roundtable, the Shantou Ocean and Fishery bureau, Chinese squid industry sector representatives, NGOs and researchers. Now spearheaded by the China Blue Sustainability Institute the FIP has an action plan focused on better squid fisheries management.
CAPPMA is a national non-profit organization directed under the Ministry of Agriculture. The organization includes a variety of industry players like 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. The objective of CAPPMA is: “to improve the self-displine mechanism among members in their business operations, to standardize and maintain seafood market orders, to protect the members’ legal rights, to coordinate relationship among internal enterprises and international parties, and to upgrade technologies and management in seafood industry ensuring sustainable fisheries development.”
The Hainan Tilapia Sustainability Alliance is the first independent, industry-led, multi-stakeholder participated association to promote sustainable seafood production in China. Their working model for the aquaculture sector that is: “seeking an innovative approach to engage various stakeholders on supply-chain towards sustainability, especially for those in developing countries where majority of production comes from smallholders”. They work with all types of stakeholders within the supply chain to explore production models that are safe, green and efficient. Jointly they aim to build up Hainan tilapia as a regional brand.
The AQSIQ is a governmental body that is in charge of national import and export commodity inspection. Their offices are located in port provinces, autonomous regions and municipalities as well import and export distribution centers. AQSIQ affiliates with the CIQ (China inspection and Quarantine), which is responsible for the management of import and export commodities inspection area.
China Blue (shortened) is the first China-based NGO committed to promote sustainable fishery and aquaculture, as well as safeguarding China’s coastal and marine ecosystems. Their approach involves inter-disciplinary research, multi-stakeholder engagement, and down-to-earth practices with scientific information and tools. By using a diverse range of talents they have built a foundation for analytical and multi-disciplinary thinking.
The CNCA is established and is authorized by the State Council: "to exercise administrative responsibilities of undertaking unified management, supervision and overall coordination of certification and accreditation activities across the country."
CAFS is a governmental scientific institute of the Chinese Ministry of Agriculture (MOA) that is dedicated to promote excellence in fisheries sciences. The academy plays an influential role in national fishery science and management policy and supports developments in fisheries engineering and technology in a wide range of ways.
