China announces additional import taxes on Australian wine as tensions escalate

Chinese government on December 10 slapped more taxes on wine from Australia, stepping up pressures in a bitter diplomatic conflict over COVID-19, territorial disputes and other irritants. Earlier this year, Canberra joined Washington in demanding a probe into Beijing’s handling of COVID-19. Irked by Australia, China then imposed a ban on import of barley, beef and other goods from Australia.

Read: Australia Says It Doesn't Want Trade War With China

As per the Chinese Ministry of Commerce, an independent investigation into the matter began earlier in August. The probe found that Australia improperly subsidizes wine exports, hurting Chinese producers, AP reported. Owing to the same, the ministry has now reported that all importers would now be required to pay a deposit of 6.3% to 6.4%, effective December 11. A final ruling in the matter is, however, pending.

China bans Australian goods

Previously, the Chinese government had imposed a 200 per cent tax on Australian wine, which as per Australian trade minister made the drink unsellable in the communist nation. In May, China had also effectively ended imports of Australian barley by putting tariffs of more than 80% on the crop and accusing Australia of breaching World Trade Organization rules by subsidizing barley production and selling the crop in China at below production costs. Australia dismissed the matter saying that it did not want a trade war with China, its largest trade partner. However, China continued imposition of bans and haled the import of beef and other items.

Read: Australia Joins Nations In Rejecting China's South China Sea Claims, Writes To The UN

Australia also attracted the ire of the Chinese Communist Party after  the former issued a statement saying that it categorically rejects all maritime claims by China that are 'inconsistent' with the 1982 UNCLOS. While, China claimed rights over the South China sea, Australia rejected it asserting that there was no legal basis behind the claim.

China had recently said Australia should know what it needs to do to improve the relationship, adding Beijing has always upheld a pragmatic attitude when it comes to dealing with its trade partners. The Chinese side also defended its measures against Australian products, saying more than 10 Chinese investments have been rejected by Canberra citing "ambiguous and unfounded national security concerns". 

Read: Chinese Govt May Stop Talking To Australia If Canberra Continues Treating It As A Threat

Read: 'We Run Our Country': Australian PM Dismisses China's Grievances List, Vows To Not Bow