June 16, 2024

China Considering Tariff Lifts on Australian Wine Imports: A Step Towards Economic Normalcy?

1 min read
Business Chief Predicts China is on the Verge of Removing Tariffs on Australian Wine

The Chinese government is considering lifting heavy tariffs on Australian wine imports, according to a business lobby. During a recent meeting with Chinese Foreign Minister Wang Yi, the Australia China Business Council emphasized that China was “opening up” to foreign investment. National President of the lobby group, David Olsson, expressed his optimism about this development in an interview with Bloomberg at the Boao Forum in China. He noted that while Australian businesses value the Chinese market, they are concerned about the unpredictability and uncertainty, especially when it comes to long-term investments.

Olsson acknowledged that geopolitical issues will continue to influence relations between Australia and China. Economic ties have been improving since the Labor government took office in May 2022, with Beijing gradually lifting trade sanctions imposed on Australian exports during the peak of tensions. Despite this progress, the heaviest remaining sanctions are on Australian wine, with tariffs reaching as high as 218%. However, Olsson believes that these tariffs will be removed by the end of March.

If tariffs are lifted, many producers expect a significant amount of Australian wine to re-enter the Chinese market once again. However, not all of it will return as producers also look to diversify and explore other markets to reduce their dependence on China. Overall, there is a sense that the relationship between Australia and China will remain complex, with ongoing geopolitical tensions shaping their economic interactions.

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