Australia–China trade war

Australia–China trade war
Part of Australia–China relations
DateMay 11, 2020 – December 20, 2024 (2020-05-11 – 2024-12-20)
(4 years, 223 days)
Location
Australia and China
Caused by
  • Chinese retaliation against Australian endorsement of an inquiry into the origins of COVID-19
StatusResolved
  • Chinese tariffs and bans implemented in 2020
  • Chinese tariffs and bans gradually exempted between 2023 and 2024
Parties
Lead figures
  1. ^ CCP General Secretary is head of the CCP Central Financial and Economic Affairs Commission, the top financial & economic decision making body in China.

In May 2020, an economic conflict between Australia and China started.[1]

Between 2023 to 2024, China gradually exempted tariffs and bans.

Background

In July 2015, both countries signed the China–Australia Free Trade Agreement.

In November 2018, China's Ministry of Commerce initiated an anti-dumping investigation on Australian barley.[2]

In April 2020, amidst the outbreak of the COVID-19 pandemic, Australia's Minister for Foreign Affairs Marise Payne questioned China's transparency in the origins and spread of COVID-19 and demanded an international investigation.[3] In response to Payne's statement, China's ambassador to Australia, Cheng Jingye, told an Australian newspaper that Australia was treading a "dangerous" path, and suggested a Chinese boycott of Australian exports.[4]

Australia's Department of Foreign Affairs and Trade summoned Cheng to explain his comments. Australian Minister for Trade and Tourism Simon Birmingham responded to Cheng's comments and said that "Australia is no more going to change our policy position on major public health issues because of economic coercion, or threats of economic coercion, than we would change our policy position in matters of national security."[4]

On 29 April 2020, Australia's prime minister Scott Morrison reiterated the call for an investigation into the origins of COVID-19, saying that it was "entirely reasonable and sensible".[5][6] Morrison earlier had suggested that World Health Organization needed tough "weapons inspector" powers to investigate the cause of the outbreak.[7][8] These statements particularly angered China and by May 2020, China began imposing trade restrictions on Australia, beginning with Australia's beef exports to China.[5][6][9]

Chronology

2020

  • 11 May: China suspended beef imports from four Australian meat processors: the Kilcoy Pastoral Company, JBS Beef City, JBS Dinmore, and the Northern Cooperative Meat Company[1]
  • 18 May: China's Ministry of Commerce ruled that Australian barley was being dumped and implemented a 80.5% tariff on Australian barley.[10]
  • 16 August: China suspended beef imports from the Australian meat processor John Dee.[11]
  • 16 October: China ordered cotton mills to suspend imports of Australian cotton.[14]
  • 2 November: China confirmed new customs inspections of lobsters, effectively suspending imports of Australian lobsters. It also suspended imports of Australian timber, and barley from Emerald Grain, after claiming that contaminants were found in both.[15]
  • 25 November: China confirmed it rejected coal imports for "failing to meet environmental standards," effectively suspending imports of Australian coal.[16]
  • 27 November: China's Ministry of Commerce ruled that Australian wine was being dumped and implemented a 206% tariff on Australian wine.[17]
  • 7 December: China suspended beef imports from the Australian meat processor Meramist Pty Ltd.[18]

2023

  • 8 February: China resumed imports of Australian coal.[19]
  • 4 August: China's Ministry of Commerce ruled that it was no longer necessary to impose tariffs on Australian barley.[20]
  • 12 December: China resumed imports from three Australian meat processors.[21]

2024

  • 18 May: China resumed imports of Australian timber.[23]
  • 29 May: China resumed imports from almost all Australian meat processors that were previously banned.[24]
  • 20 December: China resumed imports of Australian lobsters.[25]

Effects

Australia

Agricultural

Before the trade war, China was Australia's largest agricultural export market, representing 28% of all exports.[26] China imported 70% of all cotton exports, 50% of all lobster, timber, and barley exports, 40% of all wine exports, and 5% of all beef exports from Australia.[27] Agriculture is one Australia's most trade-dependent economic sectors.[28]

The tariffs had a number of impacts on Australian agriculture.[29] Although Australia found alternative markets for barley, such as Saudi Arabia and Mexico, one analyst estimated Australian farmers were losing $30–40 per tonne of barley, with Australian barley substantially cheaper than barley from France or Argentina.[30]

Other Australian trading partners, including Singapore, South Korea, and the United Kingdom, increased their imports of Australian wine, but the wine export market lost one-third of its value since the start of the trade war, a loss which continued for years.[28][31]

Lobsters that were previously exported and sold in China for $250 were now selling domestically for $100.[32]

Energy

The ban on coal imports erased $1B from Australia's economy. However, due to surging fossil fuel prices and a weaker Australian dollar, Australia's overall resources sector earned more revenue in 2021 than in any previous year.[33]

Reactions

In Australia

On 18 May 2020, Australian Minister for Trade and Tourism Simon Birmingham reacted to the Chinese tariffs on Australian barley and said that "We reject the basis of this decision and will be assessing the details of the findings while we consider the next steps. We reserve the right to appeal this matter further."[34]

In 2021, Australia's Department of Foreign Affairs and Trade requested the World Trade Organization to establish panels examining China’s anti-dumping and countervailing duties on Australian barley and wine. Australia subsequently notified each panel that the disputes had been resolved after China exempted tariffs on imports of Australian barley in August 2023 and Australian wine in March 2024.[35][36]

See also

References

  1. ^ a b Needham, Kirsty; Packham, Colin (12 May 2020). "China halts beef imports from four Australian firms as COVID-19 spat sours trade". Reuters. Retrieved 21 January 2026.
  2. ^ "Ministry of Commerce Announcement No. 89 of 2018: Announcement on the Initiation of an Anti-dumping Investigation into Imported Barley Originating in Australia" (Press release). 19 November 2018. Retrieved 21 January 2026.
  3. ^ "Australia demands coronavirus enquiry, adding to pressure on China". 19 April 2020. Retrieved 21 January 2026.
  4. ^ a b "Australia asks China to explain 'economic coercion' threat in coronavirus row". 28 April 2020. Retrieved 21 January 2026.
  5. ^ a b Karp, Paul; Davidson, Helen (29 April 2020). "China bristles at Australia's call for investigation into coronavirus origin". Guardian. Retrieved 24 February 2026.
  6. ^ a b Nelly, Alicia. "Australia-China trade stoush over coronavirus inquiry puts exports — and more —at risk". Retrieved 24 February 2026.
  7. ^ Cite error: The named reference reut_Aust was invoked but never defined (see the help page).
  8. ^ Dziedzic, Stephen (20 May 2020). "Australia started a fight with China over an investigation into COVID-19 — did it go too hard?". ABC News. Archived from the original on 21 May 2020. Retrieved 24 February 2026.
  9. ^ Tan, Su-Lin (28 October 2020). "What happened over the first year of the China-Australia trade dispute?". South China Morning Post. Retrieved 24 February 2026.
  10. ^ "Ministry of Commerce Announcement No. 14 of 2020: Final Ruling on the Anti-dumping Investigation into Imported Barley Originating in Australia" (Press release). 18 May 2020. Retrieved 21 January 2026.
  11. ^ "Global Economic and Trade Update for New Zealand Businesses - 10 September 2020" (Press release). 10 September 2020. Retrieved 21 January 2026.
  12. ^ "Ministry of Commerce Announcement No. 34 of 2020: Announcement on Initiating an Anti-dumping Investigation into Imported Wines Originating in Australia" (Press release). 18 August 2020. Retrieved 21 January 2026.
  13. ^ "China suspends barley imports from Australia's largest grain exporter". 1 September 2020. Retrieved 21 January 2026.
  14. ^ "China tells cotton mills to stop buying Australian supplies -sources". 16 October 2020. Retrieved 21 January 2026.
  15. ^ "Australian lobster, timber halted by Chinese customs checks, fuels trade dispute concerns". 2 November 2020. Retrieved 21 January 2026.
  16. ^ "China says coal imports failed environment standards amid stalled Australian shipments". 25 November 2020. Retrieved 21 January 2026.
  17. ^ "Ministry of Commerce Announcement No. 59 of 2020: Preliminary Ruling on the Anti-dumping Investigation into Imported Wines Originating in Australia" (Press release). 27 November 2020. Retrieved 21 January 2026.
  18. ^ "China suspends beef imports from sixth Australian beef supplier". 7 December 2020. Retrieved 21 January 2026.
  19. ^ "Opposition calls for more to be done on trade with China as coal exports resume". ABC News. 8 February 2023. Retrieved 27 December 2023.
  20. ^ "Ministry of Commerce Announcement No. 29 of 2023: Announcement Regarding the Review Ruling on Antidumping and Countervailing Measures Applicable to Imported Barley Originating in Australia" (Press release). 4 August 2023. Retrieved 21 January 2026.
  21. ^ McGuirk, Rod (12 December 2023). "Australia credits improving relations with Beijing after China lifts some meat export bans". Associated Press. Retrieved 28 March 2024.
  22. ^ "Ministry of Commerce Announcement No. 11 of 2024: Announcement Regarding the Review Ruling on Anti-dumping and Countervailing Measures Applicable to Imported Wines Originating in Australia" (Press release). 28 March 2024. Retrieved 21 January 2026.
  23. ^ "China lifts ban on Australian timber imports in another sign of improving bilateral relations". 18 May 2024. Retrieved 21 January 2026.
  24. ^ "China lifts most remaining trade bans on Australian beef exports". 29 May 2024. Retrieved 21 January 2026.
  25. ^ "Effective Immediately- Live Rock Lobster to China to restart" (Press release). 20 December 2024. Retrieved 21 January 2026.
  26. ^ Hurst, Daniel (28 October 2020). "How much is China's trade war really costing Australia?". The Guardian. ISSN 0261-3077. Retrieved 14 July 2023.
  27. ^ Hughes, Megan (8 March 2023). "It's another bumper year for cotton despite a wet start. But who is Australia selling to after the China trade ban?". ABC News. Retrieved 14 July 2023.
  28. ^ a b "Dollar's decline a mixed blessing". ABC News. Australian Broadcasting Corporation. 15 May 2012. Retrieved 15 May 2012.
  29. ^ Brann, Matt (22 October 2021). "The true cost of China's barley tariff". ABC News. Retrieved 13 July 2023.
  30. ^ Brann, Matt (22 October 2021). "The true cost of China's barley tariff". ABC News. Retrieved 14 July 2023.
  31. ^ Clint, Jasper (14 August 2023). "Chinese tariffs, changing palates see Australia's wine stockpile grow to 2.8b bottles". ABC News. Retrieved 15 August 2023.
  32. ^ O'Connor (11 December 2020). "Rock lobster sells for bargain price amid China trade woes". ABC News. Retrieved 17 July 2023.
  33. ^ Turner-Cohen, Alex (20 December 2021). "China's boycott of Aussie iron ore and coal fails after record-breaking earnings". news.com.au.
  34. ^ "China hits Australia with barley tariff in latest blow to relations". 18 May 2020. Retrieved 23 January 2026.
  35. ^ "Anti-Dumping and Countervailing Duty Measures on Barley From Australia (DS598)" (Press release). 16 December 2020. Retrieved 21 January 2026.
  36. ^ "Anti-Dumping and Countervailing Measures on Wine From Australia (DS602)" (Press release). 22 June 2021. Retrieved 21 January 2026.
allikas: http://en.wikipedia.org/wiki/Australia-China_trade_war