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China is targeting Australian wine in recent trade measures

(Bloomberg) – China will impose anti-dumping tariffs of more than 100% on Australian wine starting this weekend, leading to a series of widespread trade reprisals this year and further tensions with Canberra. The anti-dumping deposits will increase on November 28 and range from 107.1% to 212.1%, the Chinese Ministry of Commerce said in a statement on Friday. Australia warned Beijing that its actions could create perceptions among companies and countries around the world that trading with China is risky. Tariffs are falling just three months after China opened an anti-dumping and anti-subsidy investigation into Australian wine, and follows a series of other measures banning imports of coal via copper to barley this year. China is the largest buyer of Australian wine, importing A $ 1.2 billion ($ 880 million) through September, according to state marketing agency Wine Australia. That is 167% more than the value of exports to the next largest market, the USA. In response to China’s announcement, Australia said it would seek WTO intervention to defend itself against tariffs, which Trade Minister Simon Birmingham described as “grossly unfair, unjustified, unjustified”. “Companies and countries outside of China that see Beijing’s backlash against Australia this year would see the” potential for their trade, their businesses, to be disrupted by these kinds of unjustified, unapproved actions that frankly do not stand up “, Birmingham told reporters shares of Adelaide.Treasury Wine Estates fell more than 11% on the news before trading was suspended and the company is “urgently” reviewing details of the preliminary measures to bring the market up to date. Wine Estates Vintners winery has a 169.3% tariff, according to China’s Department of Commerce. Tony Battaglene, head of the Australian Grape and Wine industrial group, said he plans to respond to the China Department of Commerce in the next 10 days. “It must Give reasons for the different tariff rates that have been introduced so that we can just work through these arguments n have to, “he said. The two nations have been at a dead end since 2018, when Canberra Huawei Technologies Co. banned the construction of its 5G network. Adding to the complaints is Prime Minister Scott Morrison’s request for an investigation into the origins of the coronavirus outbreak. The move has hurt China’s pride and sparked a flurry of criticism that Australia is a puppet for US Read: Standing Up to China Comes at a Big Price for Australia “This latest hit by the Chinese government shows that Beijing is determined to teach Australia a lesson that can resonate around the world, “said John Blaxland, a former intelligence officer who is now a professor of international security at the Australian National University. “While it is important for Australia not to give in to these pressures, it also shows that the nation’s traders have no choice but to quickly recalibrate and diversify their markets.” Morrison tried to ease some of the pressure this week by delivering a speech praising China for lifting people out of poverty. Australia, he said, wanted a “mutually beneficial” relationship and insisted that its government not side with the US to contain China. The Ministry of Foreign Affairs in Beijing noted the “positive comments”. “Beijing says Scott Morrison’s speech last week just wasn’t enough, and that’s why China wants to keep trade pressure on,” said James Laurenceson, director of Australia’s China Relations Institute at the University of Technology in Sydney. Since the ruling applies to wine shipped to China in containers up to two liters, Australian exporters could potentially circumvent the tariffs by shipping bulk wine into the country and bottling it there, Laurenceson added that it “sells a fair share “expected the product that the country sent to China to be sold elsewhere within a year or two. Australia is the world’s most heavily dependent developed economy, and trade problems hit the country in the middle of its first recession in nearly 30 years. China will not be able to import products such as coal, barley, copper ore and concentrate, sugar, wood, wine and lobster, as those familiar with the situation know earlier this month. Australian wine has already accumulated in the country after China announced two trading probes earlier this year. More than 50 ships carrying Australian coal worth at least $ 500 million were also stranded near Chinese ports when the diplomatic spit went on sale. (Updates with comments from Birmingham in 5th and 6th paragraphs) For more articles like this please visit us on Bloomberg. comSubscribe now to stay up to date with the most trusted business news source. © 2020 Bloomberg LP

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