The tense trade relationship between Australia and China continues to escalate. According to various media reports, the Chinese government is imposing import tariffs of up to 218 percent for the next five years.
At the end of November last year, the Chinese government imposed import duties on Australian wine of up to 210 per cent for an initial period of four months. After the expiry of this period, the percentage has now been raised to up to 218 percent due to continuing tensions. The introduction of the duties was justified by the accusation of price dumping by the Australian government, which had tried to position its wines more strongly in the People's Republic with the help of massive subsidies. Furthermore, Beijing is hoping for support for its own wine industry.
With an annual turnover of almost €1.17 million, Treasury Wine Estates is the wine company with the highest revenue Down Under and is greatly affected by an increase of import duties from 169.3 percent to 175.6 percent. The portfolio includes among others the premium brand Penfolds. According to a news agency, the company is reacting to China's decision by ending its activities there and shifting its focus to other Asian markets as well as to the USA and Europe. Australian media also report that fake products with names like "Benfolds" can already be found in China. In Australia, consideration is being given to involving the World Trade Organisation (WTO) as a mediating body.
The full extent of import tariffs is at the discretion of those responsible in China, with the room for manoeuvre upwards being completely exploited, especially against smaller companies.
The conflict was triggered by a demand by the Australian government in April 2020 to research the origins of the coronavirus more intensively and to disclose them. Previously, China was the most important buyer of Australian wines. Since then, exports there have almost completely collapsed. Besides wine, other agricultural products are also affected. sw
