Bellamy's, Blackmores and A2 Milk have all taken a hit since the start of the year. Although infant formula is on the positive list, shares in popular brands including Bellamy's Organic and a2 Milk were swept up in the sell off. Bellamy's plunged as low as 10.4 per cent to $8.92, before recovering to $9.25 at 11:50AM, while a2 shed as much as 6.9 per cent to $1.59 in early trade, before gaining a bit to trade at $1.65. Morgans analyst Belinda Moore said: "concerns around a China slowdown and regulatory changes are clearly impacting the share prices of the agrifood stocks which sell into China, particularly those that sell through cross-border e-commerce channels". "However, the ... outlook commentary from the respective companies demonstrated that there is no slowdown for quality and importantly safe Australian food in China.

"It's going to volatile and there will be more changes. But the fact is China has signed an FTA [free trade agreement with Australia] and they have done that because they want more and more of our produce. "So there is a big opportunity for Australian manufacturers to continue to win market share in this large market." However, a key business leader has called for more intensity around Australia's engagement with China, warning other countries could snatch Australia's once unique advantage in the economic relationship. Prime Minister Malcolm Turnbull and his Chinese counterpart Xi Jinping will host a roundtable with leading CEOs on Friday, billed as a chance to hear business perspectives on ties between the countries. John Denton, chief executive of legal giant Corrs Chambers Westgarth, will participate in the roundtable and told Fairfax Media the mining boom helped ensure Australia and China had a "complementary relationship".

But Mr Denton said more work was needed to maintain ties as demand for resources eased and China transformed to a consumption-led economy. "The challenge is this is a more competitive space we're moving into they we were probably in with the joy of the complementary relationship under the resources boom." He said Britain and Canada - both with service driven economies - had taken strides in China. Ties to Australia have come under continued strain amid domestic controversy over Chinese investment, such as the Darwin port saga, and international tension in the South China Sea. Mr Denton said there will always be incidents in the relationship, but the underlying trend over many years had been strong.

He said the goal should be to ensure Australia has the right institutional relationships, links between people, and policy settings to preserve positive trends. Catherine Livingstone will led the Australian delegation to the roundtable, which also includes Shane Elliot from ANZ, Simon McKeon from AMP and Alison Watkins from Coca Cola. Many other chief executives are in China this week in what the government has billed as the largest ever trade mission. Australia's biggest milk processor Murray Goulburn is seeking clarification about what the regulatory changes for cross border e-commerce sites mean. Murray Goulburn confirmed its Devondale-branded milk powder and UHT milk products had been "temporarily removed from some" Chinese websites, including Alibaba's Tmall. But the dairy co-operative didn't expect the regulatory changes to "materially" hit its overall business, and the new rules had been expected "for some time".

"In terms of the reaction from our commercial partners in China, MG cannot comment on their operations, except to say the regulation is very new and is likely to evolve," Murray Goulburn said in a statement to the ASX. "Based on the information currently available to us we do not believe there will be any material impact to our business. "MG's traditional import channels are already well developed, and currently distribute a significant volume of product." Trade Minister Steven Ciobo is still digesting the Chinese changes, which are understood to affect sales of mainly vitamin supplements and milk powders. "We are analysing the information currently available and will continue to seek clarification from officials as to the full nature of the changes, which relate primarily to sales through bonded warehouses in 13 cities in China," Mr Ciobo's spokesman said.

"Much of the detail on how this will affect sales of popular products like vitamin supplements and milk powders will become clearer as the implementation rolls out." Mr Ciobo's spokesman stressed the changes only related to official cross border e-commerce channels, which he said was only "one pathway" for Australian companies to access the Chinese market. "The new rules appear to seek a balance between different channels and many industry players anticipated changes," he said. "Most Australian products can be imported conventionally by working with licensed importers and seeking necessary regulatory approvals. This will enable the sale both online and through regular retail outlets." Mr Ciobo said Australia's free trade agreement with China would see Australian products imported into China under "lower tariffs than most competitors, ‎improving our competitive position in this important market".