Australia calls China's anti-dumping tariffs on wine imports 'unwarranted' amid tensions

On November 27, China said that it would impose anti-dumping tariffs on Australian wine, a move which is likely to further escalate trade and diplomatic tension between Beijing and Canberra. In recent months, China and Australia’s relations have deteriorated, with the latter even calling for an investigation into the origins of the Coronavirus. In response, Beijing has imposed a series of sweeping trade and reprisals this year. 

Amid the rising tensions, the Chinese Ministry of Commerce on Friday informed that the recent anti-dumping deposits will take effect November 28 and the importers bringing in investigated products will need to pay deposits to China’s customs authority, which will be calculated based on the different rates the authority has assigned to various companies. According to Bloomberg, the rates range from 107.2 per cent to 212.1 per cent.

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China is one of the biggest buyers of Australian wine. In response to the recent announcement, Australia said that it would seek WTO intervention to defend itself from the tariffs, which Trade Minister Simon Birmingham labelled “grossly unfair, unwarranted, unjustified”. He also warned that China’s actions might create a perception among businesses and countries around the globe that trade with Beijing can be risky. 

While speaking to reporters in Adelaide, Birmingham said, “Businesses and countries outside of China viewing Beijing’s backlash against Australia this year would see the potential that their trade, their businesses, can be disrupted through these sort of unwarranted, unsanctioned actions that frankly don’t stand up”. 

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Morrison slams China for deteriorating relations 

Meanwhile, Beijing’s latest move comes against the backdrop of increasing tensions between the two countries. Earlier week, Australian Prime Minister Scott Morrison had hit back at Beijing and called the deterioration of bilateral relations as “needless”. He also called for smaller nations not to be caught in the repercussions of Sino-US rivalry. Morrison said that like any other sovereign nation, Canberra will not be pushed into binary choices such as the ones made by China and the United States.

Beijing, on the other hand, has said that Canberra should know what it needs to do to improve the relationship between both countries. According to the South China Morning Post, Chinese commerce minister Li Chengganga stated that Beijing has always upheld a pragmatic attitude when it comes to dealing with its trade partners, it is the Australian side, he said, which should know better what it needs to do in improving the ties. 

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