Australian exports of wine, seafood,
oatmeal, fruit and dairy are in danger of being targeted by
China if Beijing decides to escalate a row over Canberra’s calls
for an investigation into the origin of Covid-19, according to
people familiar with the matter
Chinese officials have compiled a list of potential goods
that it could target by implementing stricter quality checks,
anti-dumping probes or tariffs, adding steps to or delaying
customs clearances, or using state media to encourage consumer
boycotts, the people said, asking not to be identified as the
discussions are private.
Australia raised China’s ire by leading calls for an
investigation into the origins of coronavirus, writing to G-20
leaders to gather support for its push, as well as urging an
international probe into wildlife wet markets.
A final decision hasn’t been made and any additional
measures will depend on how Australia addresses China’s
objections, the people said. China doesn’t intend to publicly
acknowledge a link between its trade actions and Australia’s
calls for an international probe, they said.
China’s commerce ministry and foreign ministry did not
immediately respond to requests for comment.
As tensions between the two nations have grown, Chinese
officials threatened to boycott Australian goods and suspended
meat imports from four processing plants for “technical”
reasons. Beijing also slapped anti-dumping and anti-subsidy
duties totaling more than 80% on Australian barley late Monday.
Read: China Faces Angry World Seeking Virus Answers at Key
WHO Meeting
While a spokesman for China’s foreign ministry said last
week the beef imports were suspended “to secure the health and
safety of Chinese consumers,” he also criticized Australia’s
pursuit of a probe into the origins of the coronavirus first
discovered in China. The spokesman, Zhao Lijian, denied the two
issues were connected, telling reporters in Beijing: “I don’t
think you should take them as one, or make any erroneous
political interpretation.”
Beijing’s measures threaten exports to Australia’s most
important trading partner, with agricultural shipments alone
totaling about A$16 billion ($10 billion) in 2018-19, six times
higher than it was about two decades ago.
Diplomatic relations between the trading partners have
worsened in recent years, with Australia saying Beijing’s
“meddling” in its government, media and education system was a
catalyst for anti-foreign interference laws pass in 2018. Like
the U.S., Australia has also banned Huawei Technologies Co. from
building its 5G network.
A slowdown in Australian coal imports into Chinese ports
was blamed on tensions over Huawei, as was the barley anti-
dumping probe that began in 2018. China has also restricted
canola imports from Canada after the north American nation
detained a Huawei executive.

Bloomberg

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