China Imposes Anti-Dumping Duties on Australian Wine... Annual 40% Export Channel Blocked

From Beef to Lobster: A Comprehensive Strike

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cha Min-young] China has decided to impose anti-dumping tariffs ranging from 116.2% to 218.4% on wine imported from Australia, with which it is in extreme conflict. This formalizes the anti-dumping tariffs on Australian wine that have been in place for several months.

On the 26th, the Chinese Ministry of Commerce announced the final results of the anti-dumping investigation on Australian wine on its website. This decision will take effect from the 28th. The finalized anti-dumping tariffs are slightly higher than the provisional tariffs announced last November, which ranged from 107.1% to 212.1%.

The Ministry of Commerce concluded that dumping and subsidies existed in Australian wine, emphasizing that "the domestic wine industry has suffered substantial damage, and there is a causal relationship between dumping, subsidies, and the substantial damage." The ministry also pointed out last November that Australian wine received subsidies and was sold below market value.

Before the conflict between the two countries, 40% of the wine exported by Australia was consumed in China. The amount reached 1 billion Australian dollars annually (approximately 860 billion Korean won). However, since last November, the Chinese government's tariff imposition has effectively blocked the export route of Australian wine to China.

On the other hand, Australia has dismissed these claims and stated that it will dispute the matter at the World Trade Organization (WTO).

Previously, over the past year, China imposed various restrictive measures on Australian products ranging from coal to beef and lobster. China also advised its citizens to refrain from studying and traveling in Australia. It appears that China has also banned the import of Australian hay.

The relationship between China and Australia deteriorated starting in 2018 when Australia banned Huawei's participation in the 5th generation (5G) network, and worsened to its worst point last year after Australia called for an international investigation into the origin of the novel coronavirus (COVID-19).

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