• Thu. May 30th, 2024

Business Chief Predicts China is on the Verge of Removing Tariffs on Australian Wine

Byeditor

Mar 27, 2024

The Chinese government is on the verge of lifting heavy tariffs on Australian wine imports, according to a business lobby. The Australia China Business Council recently hosted a meeting for business leaders with Chinese Foreign Minister Wang Yi, where he emphasized that China was “opening up” to foreign investment. The National President of the lobby group, David Olsson, mentioned in an interview with Bloomberg at the Boao Forum in China that while Australian businesses value the Chinese market, they are concerned about the unpredictability and uncertainty, especially when it comes to long-term investments.

Olsson noted that Australian business leaders understand that they cannot expect a return to the pre-tension era, acknowledging that geopolitical issues will continue to influence relations. Economic ties between Australia and China have been improving since the Labor government took office in May 2022, with Beijing gradually lifting trade sanctions imposed on Australian exports during the peak of tensions. Despite this progress, the heaviest remaining sanctions are on Australian wine, with tariffs reaching as high as 218%. However, the Australian government is optimistic that these tariffs will be removed by the end of March.

Olsson expressed optimism that a significant amount of Australian wine will be able to re-enter the Chinese market once tariffs are lifted, although not all of it will return. Many producers are also looking to diversify and explore other markets to reduce their dependence on China. The overall expectation is that the relationship between Australia and China will remain complex, with ongoing geopolitical tensions shaping their economic interactions.

By editor

Leave a Reply