Indian seafood exports to China have been rising amid Beijing’s clampdown on imports from Japan. Beijing on Wednesday imposed a complete ban on Japanese seafood imports amid a diplomatic battle over Taiwan. Shares of Indian seafood exporters surged soon after, pointing towards potential gains for the sector, which was hit by steep US tariffs.
Shares of Telangana-based, Avanti Feeds, an integrated seafood company, closed nearly 10% higher, which was its strongest daily gain in over two months, while those of Coastal Corporation, one of the leading producers and exporters of seafood in India, rose 5%. The latter had announced plans earlier this year to ramp up shipments to China and other markets as part of efforts to reduce exposure to the United States, which has erected trade barriers.
The jump in shares came after China imposed a full ban on Japanese seafood imports as Japanese Prime Minister Sanae Takaichi linked the Taiwan conflict to Japan’s security.
HOW CHINA’S LATEST BAN HITS JAPAN’S SEAFOOD INDUSTRY
China had only recently resumed Japanese seafood imports after a nearly two-year blanket ban imposed over the release of treated water from the now-decommissioned Fukushima nuclear plant. A renewed blanket suspension would deliver a setback to Japanese exporters, for whom China previously accounted for more than 20% of seafood export volumes.
China has targeted Japan’s seafood industry as it is highly vulnerable—though it is just about 1% of all of Japan’s exports, historically China has absorbed 20–25% of Japan’s seafood exports, making it the top market before bans.