[ad_1]
SYDNEY: China suspended imports from four of Australia’s top beef suppliers on Tuesday (May 12), just weeks after the Beijing ambassador warned of a consumer boycott in retaliation for Canberra’s drive to investigate the origins of the coronavirus.
Analysts said the move raised concerns about a possible showdown between Australia and its top trading partner that could spread to other crucial sectors as it struggles to navigate the disease-induced economic crisis.
Ad
Federal Trade Minister Simon Birmingham said meat shipments from slaughterhouses had been suspended for “minor technical” infractions related to China’s health certificate and labeling requirements.
READ: Australia’s Largest State to Ease COVID-19 Blockade May 15
“We are concerned that the suspensions appear to be based on highly technical problems, which in some cases date back more than a year,” he added.
“We will work with industry and authorities in Australia and China to find a solution that will allow these companies to resume normal operations as soon as possible.”
Ad
The four meat factories account for about 35 percent of Australia’s beef exports to China in a trade worth approximately Aus $ 1.7 billion ($ 1.1 billion), according to national broadcaster ABC .
China has also set significant tariffs on Australian barley over allegations that it is selling the grain in China for less than it costs to produce it, known as dumping. The Australian Financial Review cited confidential documents saying that Beijing is considering tariffs of 73.6 percent.
Tensions between the two have increased since Australia began calling for an independent investigation into the origin of the coronavirus outbreak, which started in China before spreading worldwide, killing more than 280,000, infecting millions and destroying the global economy. .
FEARS BY OTHER SECTORS
But the calls have prompted threats from Beijing, and Ambassador Cheng Jingye called them “dangerous.”
In an interview with the Australian Financial Review last month, he said: “The Chinese public is frustrated, appalled and disappointed with what Australia is doing now.”
“If the mood goes from bad to worse, people would think ‘why should we go to a country that is not so friendly to China?’ Tourists may have doubts. “
READ: Australia annoys when USA USA Pushes COVID-19 theory from Wuhan lab
He added: “It is up to people to decide. Perhaps ordinary people will say ‘Why should we drink Australian wine? Eat Australian beef?'”
Cheng also threatened the flow of Chinese students to Australian universities, a key source of income that is already threatened by pandemic travel restrictions.
But speaking at Canberra, Birmingham said the government was treating business problems as unrelated to discussions of a virus investigation.
“It is in no way connected, in any way, to the export agreements for Australian beef or Australian barley or anything else,” he said.
“We certainly don’t see any relationship, and we would expect no other partner country to see a relationship between those factors.”
Countries already disagreed after Australia hit China with huge anti-dumping charges on various products, including aluminum and steel.
READ: New Zealand maintains support for Taiwan at WHO despite Chinese rebuke
Beijing has also come under fire for the decision to ban controversial telecommunications giant Huawei from building Australia’s 5G network.
And there is fear of a further escalation of the showdown and its impact on its two-way trade, which is about $ 235 billion.
“The risk is, of course, that this will extend to more critical areas such as iron ore, coal, education, LNG, etc.,” said Stephen Innes of AxiCorp.
He added: “But if it stays on meat and barley, then economically it shouldn’t matter much to Australia.”
CHECK THIS: Our comprehensive coverage of the coronavirus outbreak and its developments
Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram
