China will resume the importation of Australian timber.
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"Yesterday, the Chinese customs has formally notified the Australian minister of agriculture that starting from today China will resume import of Australian timbers," ambassador Xiao Qian told reporters in Canberra on Thursday.
The trade has been in limbo since late 2020.
The ambassador said his country was ready to set up a working group to discuss taking part in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
His country applied to join the pact in 2021, but little progress has occurred to date.
"We're ready anytime to set up the working group ... to talk about China's entry and we will be able to share our views, and also to listen to us from the Australian side," he said.
"Let's work together to find a common ground where we can satisfy both sides - we can sort out those issues."
He said China joining the CPTPP would improve the prosperity of Australia and the region.
On Monday, Prime Minister Anthony Albanese expressed confidence about the improving relationship.
Trade Minister Don Farrell recently returned from Beijing where he held talks with his Chinese counterpart Wang Wentao on a possible end to restrictions on billions of dollars of Australian export products such as barley, wine and lobster.
Mr Albanese said the in-person talks represented a positive step forward, given the years-long diplomatic freeze that began under the previous coalition government.
Talks are under way between the two countries on a convenient date for an official visit by Mr Albanese.
Australian Associated Press