Wine, a new source of tension between China and Australia

Bottles of Penfolds Grange, a wine from Australia, pictured in a specialty store in Sydney, August 4, 2014. David Gray / Reuters

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2 min

This is a new episode in the trade war between Beijing and Canberra. China has launched an anti-dumping investigation into Australian wine. All Australian wines imported throughout 2019 are affected by this investigation, which nevertheless looks like a new retaliatory measure against Australia.

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A big blow for Australian wine producers. The Chinese Alcoholic Beverages Association accuses them of selling their wines below cost. Consequence: China opened, Tuesday, August 18, an anti-dumping investigation into Australian wine.

Australia is today the main wine exporter in China, ahead of France and Chile. Last year, these exports reached 760 billion euros. Beijing is, in fact, Canberra's main economic partner, which represents 25% of its foreign trade.

► To read also: "Do not go to Australia", the Beijing-Canberra post-coronavirus battle

The coronavirus pandemic has confused the two countries

But disputes between the two countries have increased since Australia supported the request for an international investigation in China into the origins of the Covid-19 pandemic. In Australia, the virus has already infected more than 23,700 people and officially caused 438 deaths.

Before wine, Beijing suspended a billion euro import of Australian beef and imposed tariffs on barley . For its part, the Australian government has excluded the Chinese telecom operator Huawei from 5G in Australia, and has closed its territory to Chinese nationals, for fear of the coronavirus.

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  • Economy
  • China
  • Australia
  • Food

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