China will resume imports of Australian lobster by year-end, Prime Minister Anthony Albanese said on Thursday, marking the end of a four-year diplomatic fight that saw tens of billions of dollars of Australian exports locked out of China.

Albanese said he agreed on the timeline to resume full lobster trade by year end during a meeting with Premier Li Qiang on the sidelines of the Association of Southeast Asian Nations meeting in Laos.

"This, of course, will be in time for Chinese New Year and this will be welcomed by the people engaged in the live lobster industry in places like Geraldton, and South Australia and Tasmania, and so many parts of particularly regional Australia," Albanese said.

China first imposed unofficial bans and tariffs on Australian goods ranging from coal to wine and rock lobster in late 2020 after years of tensions that culminated in Canberra calling for an inquiry into the origins of COVID-19.

Before Thursday's announcement, all the restrictions on bar lobster had been removed as relations between the major trading partners improved.

Li said the progress reached on the issue showed that China-Australia relations were promising, as long as the two sides continued to work towards a common goal. (Reuters/Xinhua)