China to impose temporary anti-dumping measures on Australian wine

Australian flag in China

China hits Australian wine with tariffs of up to 200 per cent

China will impose temporary anti-dumping measures on wine imported from Australia from November 28, the Ministry of Commerce said on Friday, in a move likely to further escalate trade and diplomatic tensions between Beijing and Canberra.

Importers of Australian wine will have to pay deposits of 107.1 per cent to 212.1 per cent starting Saturday, China's commerce ministry said on Friday.

China - Australia's biggest trade partner - has threatened economic retaliation since Canberra called for an inquiry into the Covid-19 pandemic, and has already suspended some timber and beef imports.

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The ministry said it was making the move in response to "substantive harm caused to the relevant domestic wine industry".

China frequently leverages its huge market in diplomatic disputes, cutting off or limiting access when angered. Shares of Australia's Treasury Wine Estates Ltd, the world's largest listed winemaker, fell more than 13% before being put on a trading halt pending an announcement.

China is the top market for Australian wine exports and is also Australia's largest trading partner, with two-way trade worth A$235 billion ($170 billion) past year.

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In recent months, Canberra's relationship with Beijing has gone from bad to worse.

Beijing's latest move comes against a backdrop of increasing tension between the countries after Canberra called for an worldwide inquiry into the origins of the novel coronavirus.

Australian Prime Minister Scott Morrison hit back, saying Australia "won't be compromising" on issues including foreign investment laws and 5G networks.

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