Trade Tensions Loom as China Imposes Ban on US$400 Million Australian Wheat

Trade Tensions Loom as China Imposes Ban on US$400 Million Australian Wheat

China is expected to ban Australian wheat imports, putting in doubt about US$394 million trade, according to SCMP. China and Australia tensions escalated in April after Canberra pushed for an international inquiry into coronavirus’s origins without consulting Beijing.

  • Australian barley, sugar, red wine, timber, coal, lobster, copper ore, and copper concentrates are expected to be barred from China from Friday even if they have been paid for and arrived at ports.
  • Beijing is expected to communicate the bans to all Chinese state-owned and private traders on Tuesday.
  • China has warned importers to obey the rules, and Australian shipments would be turned away if traders try to circumvent the restrictions by rerouting shipments via a third-party country. 
  • China also suspended imports from grain exporter Emerald Grain and stopped Australian timber shipments from Queensland on suspicions of pests and other contaminants. 
  • Since the tensions started, Australia has accused China of bullying and avoiding negotiations.

Australian wheat exports to China have fluctuated in the past three years, falling from about A$290 million in 2017-18 to A$32 million in 2018-19, but exports this year to June rose to A$560 million.

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