Looks like more pain for Australia in this Covid 19 spat. One interesting fact here is that in terms of Australia's total exports . China only amounted to 6% in 2000, but as of last year it was at its peak of 32.6%!
There's a good video interview a China expert, in which the interviewer asked, why do Australia take the lead in this. (Unfortunately not being a techy, I don't know how to upload). Also I paste the article here as well as a link as I think there's a limits on how many usage.
China Considers More Economic Pain for Australia on Virus SpatBloomberg News
19/05/2020, 06:47:35
China is considering targeting more Australian exports including wine and dairy, according to people familiar with the matter, in what would be a dramatic deterioration in ties as the key trading partners spar over the coronavirus outbreak.
Chinese officials have drawn up a list of potential goods also including seafood, oatmeal and fruit that could be subject to stricter quality checks, anti-dumping probes, tariffs or customs delays, the people said, asking not to be identified as the discussions are private. State media could also encourage consumer boycotts, they said, adding a final decision on the measures had not been made.
Australia, which is the world’s most-China dependent developed economy, has raised Beijing’s ire by calling for an investigation into the origins of the pandemic. President Xi Jinping’s government is sensitive to criticism of its handling of the outbreak and has a track record of using trade as a diplomatic cudgel, with South Korea, Japan and Taiwan all experiencing reprisals in recent years.
China has already barred meat imports from four Australian slaughterhouses for “technical” reasons, and slapped tariffs of more than 80% on Australian barley late Monday after a long-running inquiry. Any additional measures will depend on how Australia addresses China’s objections, the people said, adding Beijing doesn’t intend to publicly acknowledge any link between its trade actions and the calls for a virus probe.
Shares of some Australian-listed companies that export to China sank on prospects for more trade disruptions. A2 Milk Co., which counts on China for about 40% of its sales, dropped as much as 3.9%, while Treasury Wine Estates Ltd. pared gains on the news.
The office of Australian Trade Minister Simon Birmingham declined to comment. When asked about the list, China’s foreign ministry didn’t address the specifics but said the government “has always sought to find common ground while putting differences aside, cooperate to achieve win-win results and will not harm others to benefit oneself.”
“We hope the Australian and Chinese side can meet in the middle, take more measures to improve bilateral relations and deepen mutual trust, and provide favorable conditions and atmosphere for practical cooperation in various areas,” the ministry said.
China Considers More Economic Pain for Australia on Virus SpatBloomberg News
19/05/2020, 06:47:35
Trump Aide Accuses China of Using Travelers to 'Seed' Virus
Australia-China Relations Changed for the Worse: Professor
China is considering targeting more Australian exports including wine and dairy, according to people familiar with the matter, in what would be a dramatic deterioration in ties as the key trading partners spar over the coronavirus outbreak.
Chinese officials have drawn up a list of potential goods also including seafood, oatmeal and fruit that could be subject to stricter quality checks, anti-dumping probes, tariffs or customs delays, the people said, asking not to be identified as the discussions are private. State media could also encourage consumer boycotts, they said, adding a final decision on the measures had not been made.
Australia, which is the world’s most-China dependent developed economy, has raised Beijing’s ire by calling for an investigation into the origins of the pandemic. President Xi Jinping’s government is sensitive to criticism of its handling of the outbreak and has a track record of using trade as a diplomatic cudgel, with South Korea, Japan and Taiwan all experiencing reprisals in recent years.
China Slaps Duties on Australian Barley as Tensions Escalate
China has already barred meat imports from four Australian slaughterhouses for “technical” reasons, and slapped tariffs of more than 80% on Australian barley late Monday after a long-running inquiry. Any additional measures will depend on how Australia addresses China’s objections, the people said, adding Beijing doesn’t intend to publicly acknowledge any link between its trade actions and the calls for a virus probe.
Shares of some Australian-listed companies that export to China sank on prospects for more trade disruptions. A2 Milk Co., which counts on China for about 40% of its sales, dropped as much as 3.9%, while Treasury Wine Estates Ltd. pared gains on the news.
The office of Australian Trade Minister Simon Birmingham declined to comment. When asked about the list, China’s foreign ministry didn’t address the specifics but said the government “has always sought to find common ground while putting differences aside, cooperate to achieve win-win results and will not harm others to benefit oneself.”
“We hope the Australian and Chinese side can meet in the middle, take more measures to improve bilateral relations and deepen mutual trust, and provide favorable conditions and atmosphere for practical cooperation in various areas,” the ministry said.
Australia’s China Addiction Leaves It Vulnerable to Trade Spat
Speaking earlier at a briefing in Beijing on Tuesday, Chinese foreign ministry spokesman Zhao Lijian said China would back a resolution at the World Health Assembly later Tuesday that calls for a “comprehensive assessment” of the pandemic that differs from “Australia’s earlier proposal of a so-called independent global review.”
“We suggest the Australia side to go through the text carefully,” Zhao said. “If Australia is willing to change its course and give up the political manipulation of the pandemic, we will welcome that.”
Later on Tuesday, Australian Foreign Minister Marise Payne and Health Minister Greg Hunt welcomed the resolution’s commitment to an “impartial, independent and comprehensive” evaluation of the lessons learned from the virus response.
“Australia has been clear and transparent in calling for an independent review into Covid-19, which is an unprecedented global health and economic crisis,” they said. “Australia will continue to be a consistent and constructive voice in the international community to advance and protect our national interest and the global interest.”
China is Australia’s most important trading partner, with agricultural shipments alone totaling about A$16 billion ($10 billion) in 2018-19. While the big ticket items of iron ore, coal and natural gas that China needs to build and fuel its economy so far haven’t been mentioned, education and tourism could also be vulnerable to reprisals. Beijing’s ambassador to Australia last month suggested Chinese tourists and students may decide to boycott the nation.
Critical Market.
Around one-third of Australian exports are sent to China
Australian Department of Foreign Affairs and Trade
As Australia slides toward its first recession in almost 30 years, the economic hit of more widespread trade measures couldn’t come at a worse time.
The impact “would be very keenly felt given we are in a global recession and Chinese demand is not only very large but a key source of relative strength in the global economy,” said Roland Rajah, an economist at Sydney-based think tank the Lowy Institute. “Finding alternative export markets is difficult in the best of times but virtually impossible right now.”
Any shift of focus to Australia’s mining exports “could signify a real escalation in tensions,” said Rajah, who previously worked at the Asian Development Bank and the Reserve Bank of Australia. “Not only because it is far more important to us, but because China itself would be paying a high price if they went down that path.”
China is Australia’s biggest overseas destination for wine and dairy, with shipments growing to $754 million and $564 million, respectively.