China trade: US, Europe frozen seafood exports under threat as Dalian’s Covid-19 cases halt cold chain food trading
- Dalian is a major hub for importing, processing and exporting frozen seafood, with Europe and the United States the main destinations
- The move will increase the pressure on China’s battered food supply chains amid Beijing’s zero-tolerance approach to Covid-19
Municipal authorities in the port city of Dalian, in northern Liaoning province, have suspended all cold chain food trading as outbreaks of coronavirus threaten to halt exports of frozen food to the United States and Europe ahead of the Christmas holiday.
Local authorities issued a notice on Monday asking all cold chain food companies, including government-approved, third-party, bonded and individual cold storage food producers and sales firms, to halt operations immediately.
The notice stated that the move was in response to efforts to control and contain outbreaks of coronavirus, and did not specify how long the closures would last.
The suspension in Dalian is likely to have little influence at home although it is expected to have some impact on [exports] to Europe and the US
The ban also coincides with one of the busiest times of the year for the frozen food trade, as Chinese merchants look to meet Christmas demand from overseas markets, however, local trade is not expected to be hit too much.