Anti-dumping measures on Aussie wine not ‘trade war’

Canberra urged to ‘grow up’ or face more pain

China announced on Friday it would raise tariffs on Australian wine to 212 percent as a temporary anti-dumping measure, a decision that Chinese experts said was made in accordance with WTO regulations and not a shot for a so-called “trade war” with Australia amid deteriorating ties. Instead of staging a political performance or making “sweet talk,” Canberra needs to grow up and reflect on its wrong deeds that damage bilateral ties, and make concrete moves for a better trade environment before it is too late.

According to a preliminary ruling of the Ministry of Commerce (MOFCOM) on Friday, significant dumping of Australian wine had occurred, and those imports had caused substantial damage to Chinese producers. Starting Saturday, China will impose provisional anti-dumping measures in the form of deposits on wine imported from Australia, with the deposits ranging from 107.1 to 212.1 percent.

China is Australia’s number one wine export market by value. The Friday anti-dumping measures will have a serious impact on Australia’s exports to China, a Chinese wine importer named Chen Wei said.

“With this anti-dumping measure, we have to get suppliers from other countries,” Chen Wei said.

Against the backdrop of worsening bilateral tensions between China and Australia, as the latter acts like a pawn of the US in provoking

China on its core interests such as China’s Hong Kong, Xinjiang and Taiwan,and investigation on the sources of the coronavirus, China’s announcement on Friday has been interpreted as a “shot” of trade war. Australian Trade Minister Simon Birmingham was cited by media as saying that Canberra would seek WTO intervention.

“China has always opposed countries using trade as leverage or coercive measures for political gains. China never wages trade wars with any country. China’s investigations on the wine dumping is thorough and clear in accordance with the WTO rules and procedures,” Chen Hong, a professor and director of the Australian Studies Center at East China Normal University, told the Global Times on Friday.

More pain awaits

“The ball is actually in Australia’s court. Instead of putting up media stunts, Australia needs to be truly independent and grown up in handling international affairs.”

At least seven categories of Australian commodities, including barley, sugar, wine, timber and lobsters have been reportedly halted in China, and 50 boats carrying coal from Australia were reportedly lingering around Chinese ports, Australian media reported, claiming this is China’s trade retaliation.

Although China does not mix trade with politics, it is undeniable that the deteriorating China-Australia ties do affect the business environment for Chinese companies’ investment in Australia, and Chinese consumers’ confidence in Australian products, Chen said.

Australia is not an irreplaceable source country of many products for China. Deteriorating bilateral ties would also dampen down Chinese customers’ enthusiasm toward Australian products.

Agricultural products account for about 13 percent of Australia’s exports, but once other pillar industries are affected, Australia would feel more pain, and this is why we call on Australia to act like an adult instead of behaving like impulsive, tempestuous juveniles, Chen said.

Time waits for no one, Chinese experts warned, and said Canberra should take more concrete steps to improve ties before it is too late.

“The ball is actually in Australia’s court. Australia needs to be truly independent and grown up in handling international affairs, and become a mature country,” Chen said.

Chen Hong a professor and director of the Australian Studies Center at East China Normal University