According to the General Administration of Customs of the People's Republic of China (GACC) statistics, China's food import value increased steadily in 2023, reaching CNY 1.46 billion. The value increased by 6.1% year-over-year (YoY), indicating steady expansion in the sector.
Figure 1: China’s Food Imports, Exports, and Regulatory Highlights, 2000-2019
Source: USDA, Economic Research Service
In 2008, a severe food safety crisis involving contaminated infant formula that impacted more than 54,000 infants and young children who sought medical treatment for the melamine-contaminated dairy products in China, causing kidney stones, sparked broad public concern.Following the infant formula incident, China issued its first food safety law in 2009, consolidating food standards and establishing penalties for violators. The law created a national commission to coordinate safety across the food supply chain and implemented a food recall system. As food imports increased, the government refined regulations, such as the implementation of Decree 144 by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) in 2011, emphasizing preventive measures and inspection procedures. Additionally, Decree 145 in 2012 established registration requirements for foreign food producers. By 2015, an Implementation Catalogue required registration of certain food manufacturers, with exemptions for United States (US) meat and poultry facilities. Additional decrees set specific requirements for various food products.
As a result of these enhanced quality control measures, between Jan-23 and Dec-23, China customs rejected 2,358 batches of imported food goods. The amount of rejected food products entering the country in 2023 decreased by 16.4% YoY compared to 2,820 batches in 2022, indicating a favorable trend as food imports grow. In 2023, 79 countries/regions accounted for 18.2% of rejected imported food goods, with Japan contributing the most. The majority consisted of snacks, beverages, and grain goods. The US, Vietnam, Taiwan, and Indonesia all contributed to the reported rejected goods. Japan's substantial food exports to China have resulted in it being at the top of food rejections. The GACC suspended imports of all Japanese aquatic products in Aug-23 to prevent radioactive pollution. Consequently, this prohibition caused a 90.8% YoY decline in Japan's fish and seafood exports to China in 2023.
The rejected food products were divided into several categories: fish accounting for 30%, dairy products 25%, meat 20%, fruits and vegetables 15%, and processed foods 10%. The high rejection rate of seafood and dairy products can be linked to their perishable nature and the strict rules that govern these categories. Meat products were also often rejected, most likely due to worries about contamination and conformity with Chinese norms.
Figure 2: Main Reasons for Rejection of Imported Foods to China in 2023
Source: Chemlinked-GACC
Contamination (40%), mislabeling (30%), noncompliance with Chinese requirements (20%), and expired products (10%) were the most common reasons for rejecting imported food. Contamination is the most pressing concern, emphasizing the importance of thorough testing and quality control methods by exporters. Mislabeling accounted for 30% of rejections, highlighting the significance of precise and compliant labeling standards. Noncompliance with Chinese regulations and expired items highlight the importance of exporters keeping up with regulatory requirements and ensuring the freshness of their products.
According to Chemlinked, an established regulatory intelligence and market insights platform focused on chemical, cosmetic, food, and pharmaceutical sectors in the Asia-Pacific region, guidance importers could take numerous proactive measures to reduce the possibility of rejection:
The increase in rejected imported food goods in 2023 emphasizes the need to follow Chinese rules and regulations. Importers must take proactive steps to guarantee that their products fulfill the requirements to avoid rejections and financial losses. Importers can improve the safety and quality of their products by following the recommended compliance steps, earning the trust of Chinese consumers and regulatory agencies.