China has published certain details for quality and quarantine checks: the age of the beef cattle should be less than 30 months; beef importers should be registered at the Certification and Accreditation Administration of China; cattle must be traceable to their birth farm; and China-bound beef will have to be free of residues of synthetic hormones and banned additive such as ractopamine.
Yet industry sources estimate that less than 10 percent of U.S. beef meets the requirements at the present stage, which means export volumes will be limited in the initial phase.
"There hasn't been American beef coming here officially over ten years. China has some requirements for American suppliers to comply with. So it will begin slowly, but I do believe there's a lot of potential here," said Kenneth Jarrett, president of the American Chamber of Commerce in Shanghai.
"In the short term, beef from Australia, New Zealand, and Brazil will probably still dominate the imported market in China. Over the long term, it is possible for U.S. beef to perform well, with its taste, price and service," said Yan.
FINDING THE MIDDLE GROUND
The return of U.S. beef to China and, in reciprocity, China's cooked poultry to the United States, are at the forefront of the China-United States 100-day action plan, which also covers areas including financial services, investment, and energy.
"Clearly, the agreement reflects a starting point for the two nations to reshape their trade and economic relationship," said Zhou Hao, senior Asian economist with Commerzbank.
"To achieve a win-win outcome, China and the United States should carry out structural reforms and strengthen economic cooperation rather than just narrow the trade deficit," said Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation.
According to Jarrett, feedback from U.S. companies towards the 100-day action plan is positive. "We see it as a good first step. The ten listed items have been carefully designed. They can bring very tangible benefits. People are excited about that," he said.
There has been a lot of discussion on what the next step will be. "China and the United States understand each other pretty well. They are finding the middle ground. I think financial services will probably be the next big area," Jarrett added.
