Chinese embassy blasts claims of blocking Australian imports

The Chinese embassy has hit back at claims China is undermining a free trade agreement with Australia, saying Trade Minister Simon Birmingham’s comments yesterday were “unfounded”.

On Wednesday, Mr Birmingham accused China of blocking imports and placing tariffs on Australian goods, including wine.

"The targeted nature of Chinese government measures on Australian goods raises concerns about China's adherence to the letter and spirit of its ChAFTA and WTO obligations," he told the Senate on Wednesday.

Now, the Chinese embassy has fired back at Mr Birmingham’s comments.

Senator Simon Birmingham expressed concerns over China undermining its trade agreement with Australia. Source: AAP
Senator Simon Birmingham expressed concerns over China . Source: AAP

“Australian Trade Minister’s so-called concerns about China’s adherence to ChAFTA are totally unfounded,” the Chinese embassy spokesperson said in a statement.

“As a matter of fact, China has actively fulfilled its obligations under the agreement. Import tariffs from Australia has been lowered for six consecutive years since 2015. At present, about 95 per cent of imported goods from Australia enjoy zero tariffs.”

The statement then goes on to say more than 10 Chinese investment projects since 2018 have been knocked back by the Australian government “under the pretext of ambiguous national security or national interests”.

“Since 2016, the Australian government has launched 25 anti-dumping and anti-subsidy investigations against Chinese products,” the spokesperson said.

“These measures, inconsistent with the letter and spirit of ChAFTA, have undermined Chinese companies’ interests and brought negative impact on economic and trade cooperation between the two countries.”

The Chinese embassy has released a statement saying Australia's Trade Minister’s concerns regarding ChAFTA are "unfounded". Source: AAP
The Chinese embassy has released a statement saying Australia's Trade Minister’s concerns regarding ChAFTA are "unfounded". Source: AAP

The statement then goes on to say ChAFTA is an important part of Australia and China’s relationship which has benefited both parties.

“A sound and stable China-Australia relationship serves the fundamental interests of the two sides,” it concludes.

“We hope Australia can do more to enhance mutual trust and bilateral cooperation in line with the China-Australia comprehensive strategic partnership so as to bring the bilateral relations back to the right track as early as possible.”

Birmingham warns China the ‘world is watching’

On Thursday, Mr Birmingham warned the world is watching as China picks off more Australian export markets one by one.

Cotton and wheat farmers have been warned they could be next after China extended sanctions on Australian timber and slapped new ones on lamb.

Honey and pharmaceutical producers could also be targeted as the trade dispute continues to spiral.

Mr Birmingham said China had displayed an unacceptable pattern of behaviour this year that undermined its free trade deal with Australia and flouted global commitments to the World Trade Organisation.

"Australia is not the only country that has seen these types of punitive measures and I expect the rest of the world will be watching quite closely what is happening in Australia," he told ABC radio on Thursday.

"This is damaging not just in terms of the business or trade relationship, but it is damaging in terms of heightening the level of risk and concern that businesses right around the world have in terms of dealing with China.

"It doesn't just increase that risk profile for Australian businesses, it does so for everyone."

China's government on Thursday,  slapped more taxes on wine from Australia, stepping up pressure in a bitter diplomatic conflict over the coronavirus, territorial disputes and other irritants.  Source: AP
China's government on Thursday, slapped more taxes on wine from Australia, stepping up pressure in a bitter diplomatic conflict over the coronavirus, territorial disputes and other irritants. Source: AP

Also on Thursday, China said it had imposed fresh import duties on Australian wine, accusing Canberra of giving firms subsidies.

Earlier this week, industry advocates said China’s tariffs on Australian wine are threatening to wipe out small, independent winemakers.

Last summer’s devastating bushfires and the global pandemic has already impacted small growers and wineries.

"2020 has been the most disruptive year in recent history for South Australia's wine industry," chief executive of the South Australian Wine Industry Association Brian Smedley said.

"COVID-19 and China investigations into anti-dumping have followed a series of environmental setbacks, generating uncertainty and making planning for the future more difficult."

- with AAP and AFP

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