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| Australia–China trade war | |||
|---|---|---|---|
| Part of Australia–China relations | |||
| Date | May 11, 2020 – December 20, 2024 (4 years, 223 days) | ||
| Location | |||
| Caused by |
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| Status | Resolved
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| Parties | |||
| Lead figures | |||
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In May 2020, an economic conflict between Australia and China started. [1]
Between 2023 to 2024, China gradually exempted tariffs and bans.
In July 2015, both countries signed the China–Australia Free Trade Agreement.
In November 2018, China's Ministry of Commerce initiated an anti-dumping investigation on Australian barley. [2]
In April 2020, amidst the outbreak of the COVID-19 pandemic, Australia's Minister for Foreign Affairs Marise Payne questioned China's transparency in the origins and spread of COVID-19 and demanded an international investigation. [3] In response to Payne's statement, China's ambassador to Australia, Cheng Jingye, told an Australian newspaper that Australia was treading a "dangerous" path, and suggested a Chinese boycott of Australian exports. [4]
Australia's Department of Foreign Affairs and Trade summoned Cheng to explain his comments. Australian Minister for Trade and Tourism Simon Birmingham responded to Cheng's comments and said that "Australia is no more going to change our policy position on major public health issues because of economic coercion, or threats of economic coercion, than we would change our policy position in matters of national security." [4]
Before the trade war, China was Australia's largest agricultural export market, representing 28% of all exports. [21] China imported 70% of all cotton exports, 50% of all lobster, timber, and barley exports, 40% of all wine exports, and 5% of all beef exports from Australia. [22] Agriculture is one Australia's most trade-dependent economic sectors. [23]
The tariffs had a number of impacts on Australian agriculture. [24] Although Australia found alternative markets for barley, such as Saudi Arabia and Mexico, one analyst estimated Australian farmers were losing $30–40 per tonne of barley, with Australian barley substantially cheaper than barley from France or Argentina. [25]
Other Australian trading partners, including Singapore, South Korea, and the United Kingdom, increased their imports of Australian wine, but the wine export market lost one-third of its value since the start of the trade war, a loss which continued for years. [23] [26]
Lobsters that were previously exported and sold in China for $250 were now selling domestically for $100. [27]
The ban on coal imports erased $1B from Australia's economy. However, due to surging fossil fuel prices and a weaker Australian dollar, Australia's overall resources sector earned more revenue in 2021 than in any previous year. [28]
On 18 May 2020, Australian Minister for Trade and Tourism Simon Birmingham reacted to the Chinese tariffs on Australian barley and said that "We reject the basis of this decision and will be assessing the details of the findings while we consider the next steps. We reserve the right to appeal this matter further." [29]
In 2021, Australia's Department of Foreign Affairs and Trade requested the World Trade Organization to establish panels examining China’s anti-dumping and countervailing duties on Australian barley and wine. Australia subsequently notified each panel that the disputes had been resolved after China exempted tariffs on imports of Australian barley in August 2023 and Australian wine in March 2024. [30] [31]
