Australian lobster fishers will be able to resume exports to the lucrative Chinese market in time for the Lunar New Year after the two governments agreed to end trade barriers.

The lifting of the ban on live rock lobster imports effectively draws to a close a years-long trade dispute between the nations, after Beijing dropped billions of dollars of tariffs on Australian products such as barley and wine.

Prime Minister Anthony Albanese and Chinese Premier Li Qiang agreed the embargo would be lifted by the end of 2024 after meeting on the sidelines of the ASEAN summit in Laos on Thursday.

"Premier Li and I have agreed on a timetable to resume full lobster trade by the end of this year," Mr Albanese told reporters in Vientiane following the meeting.

"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, where this is just one of the elements that produce jobs for Australians, and that is what our priority has been."

The resolution was "wonderful news" for the industry, said Seafood Industry Australia chief executive Veronica Papacosta.

"Combined with the cost of business and the inflationary period we have now, it's been a really tough time," she told AAP. 

"Some fishermen have just had to stop fishing."

While restrictions had been lifted on eastern, southern and western rock lobster, Ms Papacosta said they still await confirmation of a green light for tropical rock lobster.

The impact of ending Chinese sanctions on the Australian economy was substantial, Mr Albanese said, with the total value of impediments to exports including barley, coal and wine exceeding $20 billion.

(The seafood industry and South Australian premier are among the first to welcome the sanctions' end. (James Ross/AAP PHOTOS)

South Australian Premier Peter Malinauskas said the resumption of lobster trade to its largest export market was welcome news for the state.

The federal government said it would save the jobs of 3000 workers in the industry, including 2000 in Western Australia.

China initially imposed the trade sanctions in 2020 in retaliation to then-prime minister Scott Morrison calling for an inquiry into the COVID-19 pandemic.

Beijing has progressively lifted restrictions on Australian imports as relations thawed between the two countries.

China dropped sanctions on three Australian beef processors in December 2023 before allowing another five to resume exports earlier in 2024.

Live lobsters and two beef processors were the last remaining trade impediments.

A spokesperson for the Australian Meat Industry Council said it was hopeful the last two abattoirs would soon have their access restored with technical discussions well progressed.

More than $700 million worth of rock lobster, 98 per cent of Australian exports, went to China in 2019.

(The PM discussed steps to remove remaining impediments with Chinese Premier Li Qiang in June. (Richard Wainwright/AAP PHOTOS)

China had cited biosecurity concerns over Australian lobster, which the industry rejected.

Mr Albanese hosted Mr Li in Australia in June, when the pair discussed steps to remove the remaining trade impediments.

Senate president Sue Lines will lead a parliamentary delegation to China in the middle of October.

By Dominic Giannini and Jacob Shteyman in Canberra