China-Australia wine trade barriers seen falling as foreign minister Wang Yi confirms trip down under

High-profile trip, coming amid warming ties with Canberra, will kick off on Sunday and include a visit to New Zealand
Australian wine companies are getting production lines ready for a resumption of exports to China that is expected to be imminent

China-Australia relations

Frank Chenin Shanghai

Published: 7:01pm, 14 Mar 2024

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China’s foreign minister will co-host a strategic talk during his visit to Australia next week amid improving relations, with the likely removal of tariffs on Australian wine looming large after nearly three-and-a-half years.

It is part of Wang Yi’s visit to New Zealand and Australia from March 17-21, Beijing announced on Thursday, confirming an earlier report by the Post.

Beijing is widely expected to reduce some trade barriers that were imposed in the past few years as relations deteriorated following Canberra’s call for an investigation into the origin of the coronavirus. Bilateral ties have been improving since Australian Prime Minister Anthony Albanese visited China in November.

Australia’s largest wine producer, Treasury Wine Estates, has been informed that the Chinese Ministry of Commerce had issued a draft interim decision outlining the cancellation of additional tariffs on Australian wine, according to a filing with the Australian Securities Exchange on Tuesday.

The wine producer said the content of the provisional draft decision may change, but it “expects China to issue a final decision in the coming weeks”.

The commerce ministry said on Thursday that China would make a final ruling regarding its tariffs on Australian wine in accordance with investigation procedures and laws.

Late last month, commerce minister Wang Wentao discussed bilateral trade concerns with Australian trade minister Don Farrell during a World Trade Organization ministerial meeting in Abu Dhabi.

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The Post had reported that Wang Yi would spend one day in Canberra and another day in Sydney, and that he was expected to talk with his Australian counterpart, Penny Wong, about unresolved issues, including those concerning technology, trade and the Aukus security alliance.

Wang Yi’s trip looks to mark another milestone in the thawing of relations, and it could pave the way for a potential trip by Premier Li Qiang later this year, according to sources.

Beijing and Canberra have displayed a willingness to mend ties, and the recent indication that China’s commerce ministry was mulling the scrapping of tariffs on Australian wines is seen as the latest progress.

Australian coal, barley, cotton, beef and dairy products – all of which were under official and unofficial bans – have gradually returned to the Chinese market since last year.

03:02

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Andrew Ferguson, managing director at seafood provider Ferguson Australia, said that the industry is also expecting “good news” concerning the possible lifting of an unofficial ban on Australian live lobsters exported to China.

“So, my Chinese friends will wait for it to order,” he added.

As for wine, the owner of an Australian company said that exporters were gearing up their production lines and supporting mechanisms to serve the Chinese market again.

“However, final details of the announcement are still uncertain at the moment,” said the man, surnamed Zhang, who declined to give his full name or mention his company due to the sensitivity of the issue.

Trade between China and Australia dropped by 2.9 per cent, year on year, in the first two months of 2024 after having edged up 4.1 per cent in 2023.

Additional reporting by Kandy Wong