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Australian agricultural companies brace for Chinese government ‘roadblocks’ and job losses from trade disputes
Australian agricultural companies in China are bracing for job losses and “roadblocks” from the Chinese government as trade ties between the two nations deteriorate, according to a new report. Results of a survey by the Australian Chamber of Commerce were released as Australia further curbed foreign investment and responded to escalating tariffs and as Australia and China approached an open trade war. “Our members fear significant job losses that will ensue, especially in the wine industry, as Chinese imports from Australia decline,” AustCham CEO Nick Coyle said in a statement issued alongside the report on Tuesday. Get the latest insights and analysis from our Global Impact newsletter on the great stories originating in China. More than half of the 46 companies surveyed believed that a decline in exports would cause job losses. Fears were strongest in the wine industry, where 73 per cent of respondents feared job losses. The survey was conducted between September and November, a period in which bilateral relations declined. Australian agricultural products faced tariffs and other restrictions as the overall relationship plunged into a series of diplomatic disputes. In November, China placed tariffs of up to 212 percent. on imports of wine from Australia, crushing the business of the country’s winemakers. China tariffs: what are they and how are they used? Beijing has also targeted other Australian agricultural exports, such as beef, citing incorrect labels and product descriptions on imported products. Almost half of those surveyed said it would be difficult or very In June, Australian Prime Minister Scott Morrison authorized the country’s Foreign Investment Review Board (FIRB) to review investments for national security reasons. AugustCham said nearly half of its surveyed members disagreed, or strongly disagreed, with Canberra’s Greater Scrutiny of Foreign Investment. Tom Luckock, vice president of AustCham China, said he feared a response from Beijing. “There are collateral effects of the FIRB decisions; As the FIRB tightens and the relationship deteriorates, more obstacles will be raised for Australian companies investing and trading in China, “he said. Nick Marro, senior global trade analyst at the Economist Intelligence Unit, said: From a purely commercial point of view, we are not in a “trade war” scenario. The hostility is quite one-sided coming from China. For example, we don’t see Australia delaying, banning or imposing tariffs on broad swaths of Chinese imports, for example. “Australia is operating quite differently from the United States, if you think about where we were at the height of the US-China trade war.” Australia’s moves, such as the tightening of FDI [foreign direct investment] the rules have been tainted by a bitter perception of China, which is influencing and will continue to guide how these discussions unfold in the future, “said Marro. China, Australia and the Big Questions About a Papua New Guinea Fishing Center An October Pew Research poll showed 81% of Australians had a negative opinion of China. China is Australia’s largest trading partner, and Beijing has focused on many of the country’s top exports. . China confirmed that Australia had requested consultations with Beijing at the World Trade Organization (WTO) on anti-dumping measures imposed on Australian barley, according to a statement from China’s Ministry of Commerce on Thursday. “We regret Australia’s request for consultation. It will be handled in accordance with the dispute settlement procedures of the WTO, ”the statement said. Mining products were Australia’s largest export to China in 2019 at $ 71.4 billion, accounting for 68.7 percent of the country’s export profile, according to statistics from the Chinese government. Animal products, including meat, were the second largest category. Australia exported $ 11.4 billion of meat and other food products that year, and $ 2.5 billion of beverages, including alcoholic beverages such as wine. Australia is seeking clarification from Beijing on reports that it has blocked Australian coal imports, saying it could be a problem. “Non-compliance” with China’s commitments as a member of the WTO. Beijing has denied allegations that China breached its trade commitments. China has questioned whether Australia went against its own promises to allow open investment and trade after denying countless Chinese deals in the past two years, including Huawei Technologies Co’s blocking of the country’s 5G network. More from South China Morning Post: * Most Chinese investors, the largest group of buyers globally, will not buy property abroad in the next 12 months due to Covid-19: CLSA survey * China Trade: all you need to know * China-Australia relations: Iron ore price rises amid strong demand and bitter ties * Senior Chinese diplomat blames Australian media for putting a negative spin on Beijing’s complaints * China’s trade between the United States and Australia continues to grow in a record month despite ongoing geopolitical disputes South China Morning Post For the latest news from the South China Morning Post, download our mobile app. Copyright 2020.
