Premier Peter Malinauskas told InDaily he hopes to pave the way for markets to be re-established for industries like wine and rock lobster, whose producers have been crippled by deteriorating relations between Australia and China in recent years.

The first trip by a SA Premier to China in four years is timely, as a softening in relations has led to the Chinese Government in recent weeks announcing it will lift a debilitating 80 per cent tariff on the nation’s barley.

Malinauskas hopes to support other sectors severely impacted by restrictions like the wine and rock lobster industries, with businesses from various sectors signing up to join his visit to Shanghai, Beijing and Jinan.

“We will take part in a series of business engagements and receptions, government-to-government meetings and cultural diplomacy,” he said.

Malinauskas believes there is growing enthusiasm in SA around the renewed opportunity to not only re-establish but also to grow export markets in China.

“The fact remains that the China market is one of immense opportunity for South Australian exporters in the medium to long term,” he said.

“It remains our state’s and our country’s largest export market – by a considerable margin.

“The relaxations of trade impediments – barley being the latest – are not only good for South Australian exporters but also for Chinese customers.”

In the 12 months to May this year, SA’s merchandise exports to China totalled $2.8 billion in value – a 48 per cent increase on the year before.

SA’s Australian China Business Council president Sean Keenihan agrees that the trip is “perfectly timed”.

He believes the Albanese Government, with efforts led by Foreign Minister Wong and Trade Minster Don Farrell, has been successfully working on re-establishing political, diplomatic and economic dialogue, “creating a vastly improved atmosphere for renewed business engagement”.

While there is growing enthusiasm around the renewed opportunity to “not only re-establish” but also to grow export markets in China, Keenihan acknowledged that after the challenges in recent years there will be a “refinement of business strategy mindful of how finely calibrated supply chains are”.

“Having said that, given the lack of engagement in recent years, there is undoubtedly a knowledge gap for Australian businesses around sustainable opportunities for trade in the bilateral relationship,” he said.

Keenihan said “the Premier’s delegation is therefore perfectly timed”.

“It is an important trip to re-connect with Chinese counterparts in government and business and discuss how we grow the bilateral trade and investment relationship in these new circumstances,” he said.

Premier Malinauskas also intends to spruik the credentials of “our plans for the creation of a new university” that he believes will make a strong offer to international students in China and also Singapore, which he will also visit on the trip.

The university merger agreement between the University of Adelaide and the University of South Australia includes a $30 million over three years agreement to support the recruitment of overseas students.

Between January and April this year, there were 6,785 Chinese students enrolled in South Australia, representing 19 per cent of all international students.

Pre-COVID this number was more than 12,000 Chinese students.