China-Australia relations: Chinese tariffs weighing heavy on world’s largest listed winemaker after profits plunge

Name: China-Australia trade: Beijing set to ban nearly US$400 million worth of Australian wheat imports
Uploaded: 2021-02-17T03:52:19.000Z
Duration: 1 min 15 s
Description: China-Australia trade: Beijing set to ban nearly US$400 million worth of Australian wheat imports

China imposed up to 212 per cent tariffs on Australian wine in November amid the ongoing dispute between the two trading partners

On Wednesday, Treasury Wine Estates said net profit attributable in the half year that ended on December 31 tumbled 43 per cent to A$120.9 million (US$94 million)

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China slapped tariffs of up to 212 per cent on Australian wine in November after Canberra led calls for an inquiry into the origins of the coronavirus outbreak in Wuhan. Photo: Reuters

Su-Lin TanandAndrew Mullen

Published: 11:52am, 17 Feb 2021Updated: 11:56am, 17 Feb 2021

Treasury Wine Estates, the world’s largest listed winemaker, expects demand in China to “remain extremely limited” due to Chinese tariffs on Australian wine imports, with analysts saying the redirection of surplus wine to other markets will take up to two years.

China imposed up to 212 per cent anti-dumping duties on Australian wine in November, and after announcing on Wednesday that its half-yearly profit plunged, Treasury Wine is expecting a “minimal contribution from China” in the second half of the year.

In its interim financial result reports for 2021, Treasury Wine noted “reduced shipments in China due to the [Ministry of Commerce] investigations”.

“In China, volume and [net sales revenue] was impacted by reduced shipments resulting from the commencement of investigations by [Ministry of Commerce] in August 2020 and subsequent introduction of provisional measures in November 2020,” the report added.

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China-Australia trade: Beijing set to ban nearly US$400 million worth of Australian wheat imports

The winemaker said net profit attributable in the half year that ended on December 31 tumbled 43 per cent to A$120.9 million (US$94 million) from last year.