Australia’s Largest Christian News Site

The decision by China to lift its restrictions on the import of Australian wine is pleasing, but much of the resultant celebration is misplaced.

The restrictions should never have been imposed. They were political decisions taken by the Chinese communist regime as a mark of its displeasure with Australia about a range of matters, including our temerity in seeking an open, independent inquiry into the origins of COVID-19.

“The Ministry of Commerce ruled that in view of the changes in the relevant wine market conditions in China, it is no longer necessary to impose anti-dumping duties and countervailing duties on imported relevant wines originating in Australia,” the Chinese Ministry of Commerce said in a statement.

The Chinese did not cease wine imports; other nations, including Chile, filled the gap left by Australia.

Having lost much of the estimated $1.2 billion exports, it is unlikely that Australian companies will regain such a sufficient portion of the Chinese market.

That is no bad thing: the return of the exports is welcome, but over-reliance on one market is dangerous, as this saga indicates.

Having imposed an arbitrary decision once, the CCP will be willing to do so again if displeased about some issue. Celebrations are premature. They should be replaced by a realistic understanding of the capricious nature of the Chinese regime.

Kowtowing

The political intent of the decision was clear. It was tied to the decision by Australia to cease anti-dumping action against China over wind turbines, despite protests to the contrary by the Australian government.

Consider the sequence of events. China lodged a case against anti-dumping and countervailing measures imposed by Australia’s Anti-Dumping Commission on Chinese wind towers, stainless steel sinks and railway wheels in June 2021, only two days after Australia had lodged its case against Beijing’s wine tariffs to the World Trade Organisation.

The WTO panel found that Canberra’s Anti-Dumping Commission had not given an “adequate and reasonable explanation” for its decision to increase its estimates of the Chinese producers’ costs of making the steel goods.

But the WTO did not support China’s attempts to get a finding on the countervailing duties, which Australia had already removed. The WTO had made a few minor points against the Australian case about the calculation of value, but Australia walked away from the action which had the support of other nations including the European Union, Japan, the United States and the United Kingdom.

Even before the anti-dumping decision was made public in Australia, the Chinese government mouthpiece, the Global Times, reported the wind turbine decision in detail and described it as a “good gesture” from Australia in the context of the consideration of lifting the Chinese tariffs on wine and lobster.

The regime also claimed it was a sign Canberra was distancing itself from the “anti-China position” of the US.

Alarming Appeasement

The Albanese government claimed it had relied on the advice of the Australian Anti-Dumping Commission.

The Commission found that the dumping was “likely to continue or recur”, but that material injury is unlikely to continue or recur in relation to exports at dumped prices should the [anti-dumping] measure expire.

This is hardly reassuring. It also supports the suspicion that the imposition of anti-dumping measures was appropriate and has been dropped subsequently for political reasons, coming as they did before the Chinese lifted the wine restrictions.

Coming in the days before the visit of Chinese Foreign Minister, Wang Yi, to Australia, the decisions establish a worrying precedent.

Australians have to ask what is the cost of these decisions.

Despite its public rejection of Paul Keating’s pro-China stance, the Albanese government appears to be adopting his appeasing approach to the CCP.

This is a dangerous and worrying position. What else will the Albanese government concede to remain in the CCP’s good books?

___

Republished with thanks to Kevin Andrews. Image courtesy of Adobe.