The vast and diverse Chinese market offers significant opportunities for trade growth across a wide range of brands and companies. When it comes to Greek F&B products, there are several easy steps that can be taken to enhance their visibility and market penetration in this promising field. Mr. Georgios Chatzipetros, Head of the Economic and Commercial Section of the Greek Embassy in Beijing, shares his insights with Ambrosia Magazine on the future potential of Greek export companies in China.
Interview: Kyriaki Moustakidou
What is the biggest challenge for companies or brands who want to do business in your country?
China is a vast but challenging market, which offers a wide variety of opportunities to any interested party across all sectors. China is also a diverse market: the developed coastal mega-cities in the East and South have little to do with the developing West. The same goes for their respective markets which have different needs and different peculiarities. It takes caution and perseverance to enter the Chinese market, however if things are done in the proper way, success is almost guaranteed.
The first challenge that exporters face is the language barrier. Unfortunately, not so many Chinese importers speak English, even if they are actively involved in international trade. Communication is achieved via mechanical translation apps which, although can transmit the general meaning, can lead to misunderstandings. Therefore, finding a trustworthy partner is essential. In this, our Office can support our exporters, suggesting possible partners who already are involved in importing Greek products to China. A reliable partner is also essential in order to deal with the Chinese bureaucracy which is quite complicated and time consuming.
How do you describe the Greek exports profile in China?
What is interesting in the Greek exports profile in China is that, contrary to the usual picture, agri-food products represent a very small percentage of the total. This percentage historically ranges between 7% and 10%. There are many reasons for this but, in my opinion, the fall of the share of the agri-food products in the total Greek exports to China that is recorded recently, can be attributed to two major factors. The first one is the supply chain disruptions caused by the COVID-19 pandemic. It should be noted here that, contrary to the rest of the world, the relevant restrictions in China were finally lifted at the end of 2023. Therefore, there were three whole years that trade with China was more difficult than usual, if not impossible (e.g. cold chain products, like Greek yoghurt, were kept at bonded warehouses in order to be subjected to COVID tests for a significant period of time, thus shortening considerably their shelf life and lowering their profitability). During this period, exporters of perishable goods turned to other markets and found new partners. As everybody knows, once made, a business relation is difficult to break, therefore the exporters didn’t return to China.
The second main factor is the radical reform of the Chinese import regime that was suddenly announced in September 2021 and implemented in January 2022. According to the provisions of Act 248 and Act 249 of the General Administration of Customs of the People’s Republic of China (GACC), all foreign agri-food producers and exporters should obtain a certain code for each of their exported products which should be clearly stated on their packaging. This code is issued by GACC, via an online platform, where the producers and exporters have to upload certain information. Moreover, the Competent Authority of each country is involved in the process, in the case of eighteen product categories (meat, dairy, fisheries, pasta, coffee etc.), guaranteeing the validity of the uploaded information. The complexity of the new process, the fact that, in the beginning, it was a work in project and had a lot of technical glitches, and the lack of clarifications from GACC made a large number of exporters to think twice about their exports to China and try to find other partners.
Which Greek products have the greatest potential in the Chinese market?
In 2024, the first Greek agri-food product that was exported to China was by far whey milk (~ €15 mn. or 3,7% of total Greek exports). Other similar products were jams & jellies, fruit juices, pasta, olive oil, bottled water, cheese, raisins, kiwi fruits (the only fresh fruit that Greece is allowed to export to China), wines, mollusks, yoghurt, coffee, salt, honey, saffron, beer etc. However, as I mentioned before, their value is quite low, far lower than the capabilities of both Greek producers and the Chinese market.
Can you share with us some actions that can be taken to improve the position of Greek F&B products in your market?
In my opinion, some ways to increase our agri-food exports to China are:
1. Raising public awareness for the high quality and health benefits of Greek agri-food exports. After the pandemic, it seems that the Chinese consumers have started to change their behaviour and show a stronger interest for food and beverages with increased health benefits. Therefore, products like olive oil, Greek yoghurt and honey could find a bigger consumer base, provided that their health benefits are clearly communicated to the consumers mainly via physical or online promotional campaigns, as well as by respective declarations on their packaging, always paying attention to the pertinent Chinese legislation.
2. Target markets of smaller cities. It should be noted that, by Chinese standards, the term “smaller cities” refers to cities with a population of 5-10 mn. Their market is not as saturated as those of the well-known mega-cities of China (Beijing, Shanghai, Shenzhen, Guangzhou etc.) so the competition is less fierce. Moreover, as their income is getting higher, consumers in these cities are actively looking for new, high quality imported products, like wine and liquors for example, which can be seen, among other things, as status symbols. Finally, provinces and cities in Western China are recording very impressive growth rates, since the region, which is quite less developed than the East, is strongly supported by the central government of China. It should be noted though that the vast area of China and the remote location of some of these cities require bigger investments on the part of the exporter.
3. Take full advantage of the EU-China Agreement on the Mutual Promotion and Protection of Geographical Indications, which came into force in 2021. Under this Agreement, the Greek Geographical Indications “Samos”, “Sitia Lasithiou Kritis”, “Elia Kalamatas”, “Masticha Chiou”, “Feta” and “Ouzo” are protected in the Chinese market (for “Feta”, an eight-year grandfathering period is foreseen), while some more are expected to be added soon. The European Union is funding a quite large campaign for the promotion of the Agreement and the Geographical Indications in China, giving exporters a more economic chance to promote their products.
4. Participate in or visit landmark exhibitions. Either individually or under the umbrella of a Chamber, Association etc., participating in or visiting these exhibitions provides an excellent opportunity for exporters to meet potential partners face to face and investigate the possibilities for a mutually beneficial cooperation. It should be noted that, these exhibitions do not just refer to the city or province they are organized in but they attract a very large number of exhibitors and visitors from all over the country.
5. Take full advantage of the explosive growth of e-commerce in China. It should be noted that, in 2024, more than a quarter of China’s consumer goods were sold online. This market share is far above the global average. Apart from physical points of sales, the exporters should also consider the possibility of collaborating with companies that run the biggest Chinese e-commerce platforms, like “Alibaba Group”, “JD.com Inc.” and “Pinduoduo”, which have active users all over China and they are willing to provide respective guidance and implement online promotional campaigns.
I would like to repeat that our Office is ready to support the efforts of Greek exporters by providing necessary information and guidance, as well as suggesting reliable potential partners.
Embassy of Greece in Beijing
Office for Economic and Commercial Affairs
No.19 Guang Hua Lu,
Chao Yang District, Beijing 100600
Tel.: +86 (0)10 8532 6718
E-mail: ecocom-beijing@mfa.gr
