China, Australia Barley 'COVID-19 Retaliatory Tariffs' Countdown Begins

Discussion on Imposing 80% Anti-Dumping and Countervailing Duties on Australian Barley
Half of Australian Barley Production Exported to China, Impact on Australian Farmers Inevitable

[Asia Economy Reporter Cho Young-shin] There are growing expectations that the Chinese government will impose anti-dumping and countervailing duties on Australian barley. After the Australian government expressed support for an international investigation into the origin of the novel coronavirus (COVID-19), there was strong backlash in China, leading to interpretations that China’s trade retaliation may be intensifying.

On the 11th, Chinese media outlets such as Xinhuanet cited Australian media reports stating that the Chinese government plans to impose anti-dumping and countervailing duties of 73.6% and 6.9%, respectively, on Australian barley. The Chinese Ministry of Commerce has been conducting investigations into anti-dumping measures on Australian barley for over a year and plans to conclude the investigation around the 21st of next month.

Barley is one of the top three agricultural products Australia exports to China. In 2018, Australia’s dependence on China was absolute, exporting about half of its annual production to China. As of 2018, exports to China amounted to AUD 1.5 billion (approximately KRW 1.2 trillion). Particularly, Western Australia exports 88% of its barley production to China.

A representative from the Grain Producers Association of Australia expressed concern, saying, "(The imposition of duties) will be a significant blow to Australia," and warned that "trade in barley between the two countries will be halted depending on the market price of barley."

The sensitivity to anti-dumping measures on barley is linked to COVID-19. After the Australian government announced it would join the United States in investigating the origin of COVID-19, the Chinese government hinted at economic retaliation against Australia. The editor of the Global Times harshly criticized Australia on his Twitter, calling it "chewing gum stuck to the sole of the foot," and on the 27th of last month, Chinese Ambassador to Australia Cheng Jingye warned in an interview with Australian media that "China could suspend imports of Australian beef and wine and reconsider visits by Australian students and tourists."

On the 29th of the same month, China’s state-run Global Times threatened that Chinese importers of Australian beef and wine might halt transactions with Australia. Xinhuanet countered the sensitive reactions of Australian media to the anti-dumping and countervailing duties by stating that they are "politically interpreting" the issue. Despite China’s anti-dumping and countervailing investigations being purely legal actions, Western media are portraying them as economic retaliation.

The Australian Department of Trade, Investment and Tourism stated, "We respect China’s investigation, but imposing anti-dumping and other duties on Australian barley is unjustified," and added, "We will seek solutions before the Chinese government makes a final decision."

This content was produced with the assistance of AI translation services.