China has lifted an import ban on Australian timber, Beijing's ambassador said on Thursday, as strained ties between the two countries thaw.

Xiao Qian told reporters in Canberra that China would resume imports of Australian timber as of Thursday.

The once US$406.98 million annual timber trade with China was largely suspended since late 2020 after Beijing claimed it had found pests in shipments coming from several Australian ports.

"Chinese customs has formally notified the Australian minister of agriculture that starting from today China will resume import of Australian timbers," ambassador Xiao said in a speech in Canberra.

The move comes shortly after Australia’s trade minister Don Farrell met the commerce minister Wang Wentao in Beijing on, a trip which he said was aimed to secure unrestricted commerce with China.

The mainland is Australia's largest trade partner.

On the trip, Farrell had said fully reopening trade would benefit exporters and producers in both countries. (AFP/Reuters)