China considers imposing tariffs on Australian wine

China on Tuesday began investigating wher Australia was dumping wine in latest tre dispute to strain relations between free-tring partners and could shut down world's biggest export market for Australian wine. Chinese Ministry of Commerce said anti-dumping investigation involved wine in containers of 2 liters (68 fluid ounces) or smaller imported from Australia from Tuesday. Australian government denied subsidizing exporters.

“We do find this deeply troubling, concerning and perplexing given Australia’s wine industry is t subsidized to export and it’s certainly t dumping product on world market,” Tre Minister Simon Birmingham said. “w it’s for China and Beijing to explain rationale behind se actions and why y have moved to that st of an investigation.”China’s only or anti-dumping investigation of Australia effectively closed China market to Australian barley in May through crippling tariffs. Australia is appealing that decision.

Beijing investigation of Australian wine exports, which me 1.1 billion Australian dollars ($795 million) from Chinese market last year, could take between a year and 18 months.Birmingham said he hoped China would t impose interim tre measures during investigation.

China’s decision to shut out Australian barley a week after it banned beef exports from Australia’s four largest abattoirs over labeling issues have been linked to Australian calls for an independent investigation into to source of coronavirus as well as responses to pandemic.China’s Ambassor to Australia Cheng Jingye warned in an Australian newspaper interview in April that Australian wine could be targeted in a Chinese consumer boycott if government persisted with its call for a COVID-19 inquiry.

Asked if wine investigation was a political tactic, Birmingham told a news conference: “That’s really a question for China.”“Our hope and expectation is that se matters should be considered and dressed on ir merits and that means that Beijing and Chinese authorities should look at evidence,” Birmingham said.

Weihuan Zhou, a University of New South Wales international tre expert, suspected wine probe was part of separate, decelong tre dispute between countries over anti-dumping rules, particularly over Australia’s allegations of China dumping of steel products.

Bilateral relations h shown improvement since pandemic after Australia distanced itself from U.S. security concerns over popular Chinese apps TikTok and WeChat, Zhou said.

“I don’t think it’s part of previous political fight been Australia and China” over coronavirus, Zhou said. “re have been positive signs of political improvement of bilateral relationship.”Shares in Australian wine exporter Treasury Wine Estates plunged as much as 17% on Australian share market on Tuesday on news of Chinese investigation.

Melbourne-based company reported to Australian Securities Exchange in 2018 that it was one of several Australian wine exporters experiencing delays in getting wine through Chinese customs. company said in a statement to exchange on Tuesday that it will “cooperate with any requests that we receive for information from Chinese or Australian authorities.”

Birmingham said Australian wine was most expensive on Chinese market after New Zealand wine. He said he h been unable to speak to his Chinese counterpart about mounting bilateral tre disputes since last year.“Australia is certainly t engaging in any of war,” he said.

Australia has h as free tre deal with China, its biggest export market, since 2015. Australia is regarded by some as Western country most susceptible to Chinese ecomic pressure because of ir close ecomic ties.Zhou said he h long doubted that China would target Australian wine in its diplomatic dispute with Australia because Chinese investors would become collateral dam.

“y Chinese investors are trying to secure a production base in Australia so that y can provide sufficient supply back to Chinese market,” Zhou said.“That means that if China’s government decides to impose anti-dumping duties against Australian wine, that will hurt Chinese investors as well,” he ded.

(Im Credit: AP)