The Australian government is seeking clarification from China on the confusion over bilateral trade, and a clear answer to rumors that China will begin imposing sanctions on a number of Australian industries by the end of the week.
Australia’s Trade Minister Simon Birmingham said Wednesday (Nov. 4) that he had raised concerns with Chinese officials about several trade issues, including China’s “sudden” increase in testing requirements for live lobsters.
Speaking to the media in Sydney, Birmingham said, “There are so many different rumors and claims going around that it’s hard to figure out what’s true and what’s exaggerated.
According to recent reports in The Guardian and Hong Kong’s South China Morning Post, Australian wine exporters have been alerted by Chinese importers that as of this Friday, “no Australian goods will be cleared through Chinese customs” and are expected to refrain from shipping goods to China until the matter is resolved.
Earlier this week, some Chinese importers refused to accept Australian shipments of wine, lobster, coal, timber, wool, barley and copper ore, among other commodities.
Several Chinese importers have received verbal orders from government officials to stop importing Australian wine. Last year, Australia’s wine exports to China totaled about A$1.26 billion.
Reuters says China refused to accept recent shipments of barley to China from Emerald Grain, Australia’s largest grain exporter.
The Guardian says dozens of Australian wine exporters have called authorities to check the veracity of the reports to determine whether China is boycotting so many Australian goods.
The newspaper also said that China may soon ban imports of Australian wheat, but the exact date has not been set. According to Reuters, this cannot be confirmed from independent sources yet.
In response to the confusion, China has denied that the Chinese government ordered the comprehensive trade sanctions against Australia. On Monday, the Chinese side explained that the suspension of Australian timber imports was due to the discovery of pests in previously imported timber. The increased inspection of lobsters is aimed at ensuring food safety.
Reuters asked China’s Foreign Ministry about whether the Chinese government had ordered importers to stop buying Australian goods, and the response was: “It is the initiative of the enterprises themselves to reduce imports of relevant products from Australia.”
In a statement issued Tuesday, Birmingham said, “While we should not rush to conclusions, we are working closely with the companies involved in these reports.”
Birmingham said, “We are also continuing to make inquiries with Chinese authorities to seek clarification and encourage them to address areas of concern.”
China is Australia’s largest trading partner. Since Canberra proposed an independent international investigation into the source of the new coronavirus, China has threatened to significantly reduce imports of a wide range of goods from Australia.
This year, Beijing has taken a variety of measures against Australia, such as launching an anti-dumping investigation into Australian wine, suspending Australian beef imports, and issuing warnings to Chinese citizens not to travel to Australia to study.
Australia’s Trade Minister Birmingham asked China to “play by the rules. He urged Beijing to clarify the issue and explain to both the Australian and Chinese business communities that are experiencing such distress.
Birmingham said the Australian government was still trying to understand what had happened. The Guardian quoted Birmingham as saying, “If the denials are true and accurate, then, I suspect, we will be able to get answers from the Chinese side, to give our lobster exporters and others the certainty they deserve, to give our Chinese customers the certainty they deserve.”
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