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China, Australia’s biggest trading partner, has threatened economic retaliation since Canberra called for an investigation into the COVID-19 pandemic and has already suspended some imports of wood and meat.
ARCHIVE: General view of the wine barrels. Image: Pixabay.com
BEIJING – China said on Friday it would impose anti-dumping measures on Australian wine, in a further increase in tensions between Beijing and Canberra.
China, Australia’s biggest trading partner, has threatened economic retaliation since Canberra called for an investigation into the COVID-19 pandemic and has already suspended some imports of wood and meat.
Starting on Saturday, importers will have to pay deposits of 107.1% to 212.1%, the Chinese Ministry of Commerce said.
The ministry said it was taking action in response to “substantial damage caused to the relevant national wine industry.”
China frequently takes advantage of its huge market in diplomatic disputes, cutting off or limiting access when angry.
Wine exports to China hit a record A $ 1.3 billion (US $ 900 million) last year, according to Australian government data, making it the largest market by product value.
Shares of Treasury Wine Estates Limited, which owns the popular Penfolds brands, plunged more than 11% on the news before trading stopped.
China’s wine industry has complained that Australian wines benefit from government subsidies that give them an advantage over Chinese products, the Commerce Ministry said in August when it launched its investigation.
Australian Trade Minister Simon Birmingham said at the time that “we strongly rebutted claims” that government programs supporting research and development amounted to a subsidy on the country’s wine exports.
In recent months, Canberra’s relationship with Beijing has gone from bad to worse.
Beijing has produced a long list of complaints about Australian policies, from a ban on Huawei’s involvement in 5G to its call for an investigation into the origins of the coronavirus pandemic.
A Chinese official handed over a dossier to the Australian media containing 14 complaints earlier this month, reportedly telling the media: “If you make China the enemy, China will be the enemy.”
Australian Prime Minister Scott Morrison responded by saying Australia “will not compromise” on issues such as foreign investment laws and 5G networks.
In May, China suspended beef imports from four Australian slaughterhouses and imposed 80% tariffs on Australian barley imports.
Two Indian merchant ships carrying Australian coal have been trapped in Chinese ports since the summer, and Chinese Foreign Ministry spokesman Zhao Lijian said on Wednesday that Chinese authorities had found in recent years “many cases in the that the imported coal did not meet our environmental protection standards. “
Beijing also warned people not to visit Australia for study or tourism, citing anti-Asian racism in the wake of the pandemic.
AUSTRALIA TO ‘ENFORCE’ THE WINE INDUSTRY FROM CHINA TARIFFS
Australia will “vigorously defend” its multibillion-dollar wine industry from China’s punitive new tariffs, its agriculture minister said on Friday, increasing the threat of countermeasures through the World Trade Organization.
“The Australian government will vigorously defend the industry,” said David Littleproud. “Obviously we will exhaust all avenues available through the WTO.”
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