Sydney:Biting new Chinese trade tariffs have stoked fears that Australia´s virus-weakened economy is being targeted for political retribution and the two countries may be sliding into a shadow trade war.
Since Canberra pointedly demanded an investigation into the origins and spread of the coronavirus, the number of Aussie businesses being squeezed in China has exploded.
Crates of Australian rock lobsters have been left to rot at a Chinese airport, and mountains of coal have been stuck in Chinese ports. On Friday, Beijing turned the screw again, hitting Australian wine exports with punitive tariffs of up to 212 percent, essentially closing off a US$1 billion market.
In total, 13 sectors have been targeted according to a running tally from Jeffrey Wilson, a trade expert with the Perth USAsia Centre think tank. The list so far includes barley, beef, coal, copper, cotton, lobsters, sugar, timber, tourism, universities, wine, wheat and wool.
Wilson estimates the total value of Australian goods at risk at around US$40 billion.
It is an eye-watering number that represents 12 percent of all Australia´s exports, in a country experiencing its first recession in 30 years.
While that may hurt individual Australian companies, the higher cost for Australia may be political – being made an example of by its largest trade partner.
“This is really about sending a message to other countries,” said Wilson. “´Keep your mouth shut or we´ll do to you what we´re doing to Australia.´”
