China opens anti-subsidy investigation into Australian barley imports
- Latest measure follows anti-dumping probe announced last month and deepens uncertainty for growers
- Some traders argue measure is largely symbolic since drought has cut output and raised prices, eroding Australia’s competitive advantage
China’s commerce ministry launched an anti-subsidy probe into Australian barley imports on Friday, ramping up pressure on suppliers and increasing uncertainty in the market after an anti-dumping probe announced last month.
The added trade measure came as relations between China and Australia remained tense over questions of influence in Pacific island nations, and followed renewed rapport between Beijing and Washington that led to a trade truce.
The China Chamber of International Commerce has complained that barley was subsidised by the Australian government, allowing the grain to enter the Chinese market in large volumes at low prices, hurting domestic suppliers, according to a statement published on the website of China’s Ministry of Commerce.
A severe drought this year, however, has cut Australia’s grain output, boosted prices and already curbed barley shipments, traders and analysts said.
“The measure has more symbolic significance than actual impact, especially for the feed industry,” said Cherry Zhang, a grains analyst with Shanghai JC Intelligence.
“Australian barley prices have lost their edge … already. And now as the Sino-US relation eases, we’ll probably be able to buy sorghum, corn and other feed products from the US in the future,” she said.