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China suspended red meat imports from four Australian slaughterhouses in a move that analysts said was “politically motivated punishment” for Canberra’s call for an investigation into the origins of Covid-19.
The beef ban follows Beijing’s warning over the weekend that it planned to impose punitive tariffs on Australian barley exports. The threat increased tensions with Canberra, which accused China of threatening “economic coercion” against it during the pandemic.
Australia’s trade minister Simon Birmingham said on Tuesday that the government had been notified that imports from four slaughterhouses had been suspended by Chinese authorities because of labeling requirements and health certificates.
“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 said.
In 2017, Beijing cited concerns about labeling and health certificates for Australian meat when it temporarily banned meat imports from six processors.
Beijing’s apparent readiness to deploy trade barriers against Canberra is part of an aggressive diplomatic campaign aimed at countering the accusations that Covid-19 originated in China, according to analysts. The attacks have included Chinese diplomats who claim that pensioners in French retirement homes were left to die and posted conspiracy theories on Twitter that the United States created the pandemic.
Richard McGregor, an analyst at the Lowy Institute think tank, said the timing of the suspension, which comes just weeks after Beijing accused Canberra of partnering with Washington to launch “a political campaign” on the investigation, suggested it was ” government – politically motivated and directed punishment ”.
“If this is, as it seems, a deliberate attempt to punish Australia, then it certainly lies Beijing’s previous statements that there could be a consumer-led boycott of Australian products,” he said.
“Australia should complain out loud about this, not only to defend its exporters, but to remind other countries around the world that this is how China behaves if it dares to cross them.”
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The Chinese embassy in Canberra did not respond to a request for comment.
The news of the latest trade friction with China sparked a sell-off of the Australian dollar, which fell about 0.75 percent against the US dollar to $ 0.6430. Shares of the Australian Agricultural Company, the country’s largest beef and cattle producer, fell 5 percent to A $ 1.03 ($ 0.67).
China is Australia’s largest trading partner, with two-way trade worth A $ 235 billion ($ 153 billion) in the year to the end of June 2019. However, bilateral relations have collapsed following the approval of Canberra’s harsh foreign interference laws in 2018, which were primarily aimed at Beijing.
The call for a virus investigation sparked a furious reaction from the Chinese ambassador to Australia. Cheng Jingye warned that tourists and students might have doubts about traveling to the country, and suggested that Chinese consumers might ask “why should they drink Australian wine or eat Australian beef.”
According to ABC, Australia’s national broadcaster, the four specific meat processors are two facilities owned by Brazilian meat company JBS, one from Northern Meat Company of Australia, and one from Kilcoy Pastoral Company owned by Hosen Capital, the Chinese private equity group. .
Industry experts said the four slaughterhouses processed more than a fifth of Australia’s A $ 2 billion a year beef exports to China.
Beijing’s threat to impose tariffs of up to 75 percent on Australian barley imports followed a lengthy anti-dumping investigation by China. Birmingham said Canberra would consider challenging Beijing at the World Trade Organization if it carried out the threat.
“We reserve all rights regarding the defense and defense of the integrity of Australian barley farmers and producers,” said Mr. Birmingham.
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