Canberra, Australia

China and Australia during the COVID-19 pandemic faced a number of issues that strained their bilateral relationship, including the imposition of tariffs on Australian wine by Beijing in 2020. Now, China, after a gap of three long years, announced on Thursday (Mar 28) that it is lifting the imposed tariffs on Australia.  

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In April 2020, China imposed tariffs exceeding 200 per cent on Australian barley exports, accusing the country of dumping barley into the Chinese market and subsidising its farmers.

The move was seen by Australia as politically motivated in retaliation for Australia's call for an independent investigation into the origins of the COVID-19 virus. The call for investigation drew criticism from China and it accused Australia of being a 'puppet' of the United States. 

The Ministry of Commerce in China has now stated that the removal of tariffs would come into effect from Friday (Mar 29).

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He Yadong, spokesperson for China’s Ministry of Commerce while highlighting the importance of trade between the two countries said, “We are willing to work with Australia to resolve each other’s concerns through dialogue and consultation and jointly promote the stable and healthy development of bilateral economic and trade relations." 

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Prior to the tariffs, trade between Australia and China amounted to 1.1 billion Australian dollars annually. China was also the largest export destination for Australian wine.

Australia-China dispute over submarines 

The other issue that made China impose tariffs was Canberra's decision to abandon a $90 billion deal with France's Naval Group to build a fleet of conventionally powered submarines. 

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Instead, Australia opted to pursue nuclear-powered submarines under the AUKUS framework. This move blindsided France and drew swift condemnation from Beijing.

(With inputs from agencies)