The Chinese government yesterday said that it had launched another probe into Australian wine imports, accusing Canberra of using subsidies to give firms “an edge” over local rivals, in the latest salvo as trade and diplomatic relations between the two deteriorate.
Tensions have been ramped up between the countries in the past few months after Australian Prime Minister Scott Morrison joined the US calls for an independent inquiry into the COVID-19 pandemic.
China’s wine industry lobby has complained that Australia offered different subsidy programs that give its wines an advantage over Chinese products, the Chinese Ministry of Commerce said in a statement.
Photo: AFP
It added that the application by the wine lobby group said “there are a total of 40 subsidy programs that may offer an edge to the Australian wine industry.”
The probe would look into subsidies received by Australian winemakers throughout last year and could lead to countervailing duties on imports, it said.
Beijing has already conducted preliminary discussions with Canberra on the inquiry, it said.
Australian Minister of Trade Simon Birmingham said “we strongly refute claims” that government programs supporting research and development amounted to a subsidy of the country’s wine exports.
“The government will work with our internationally renowned wine industry to mount the strongest possible case against these claims,” he said in a statement.
The news comes two weeks after the Chinese ministry said it would investigate dumping — when a country sells goods in another country for less than it costs at home — throughout last year.
Wine exports to China hit a record A$1.25 billion (US$900 million) last year, according to Australian government data, making it the biggest market by value for the product.
China — Australia’s biggest trade partner — has threatened economic blowback on a range of Australian goods since Canberra called for the virus inquiry.
In May, China suspended imports of beef from four Australian slaughterhouses and imposed 80 percent tariffs on Australian barley imports. Beijing has also warned people not to visit Australia for study or tourism, alleging anti-Asian racism in the wake of the pandemic.
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