China launches probe into the cost of Australian wine . . .
Beijing’s latest anti-dumping probe could drastically increase the price of Australian wine sold in China. In this latest round of tit-for-tat measures between China and Australia, China is accusing Australian winemakers of dumping their wine into the Chinese market. In this case, dumping is less fun than it sounds; it’s a technical term that describes the process of selling a product in a foreign market for below fair market price.
No more ‘cheap’ Aussie wine . . .
China is Australia’s biggest trading partner and is also the top market for Australian wine exports. The mere mention of China’s anti-dumping probe caused Australia’s largest winemaker, Treasury Wine Estates, to lose a fifth of its market value. This latest probe follows on the heels of Beijing recently imposing tariffs on Australian barley, suspending some beef imports, and telling Chinese students and tourists that racism made it unsafe to travel to Australia.
Canberra invokes Beijing's ire . . .
Beijing’s retaliatory measures began after Australia’s government called for an independent inquiry into the origins of the coronavirus outbreak in Wuhan and its decision to ban Huawei from participating in Australia’s 5G networks. Canada has yet to officially ban Huawei from Canada’s 5G networks. Doing so would be in line with moves by other Five Eyes member states (Australia, New Zealand, the United Kingdom and the United States). But such an action could result in retaliatory measures similar to those placed on Australia.