Despite new tariffs on beef, China is far from closing the door on trade with Australia |
Australia has been reminded once again that China isn’t always a reliable trading partner.
Last week, on New Year’s Eve, Chinese authorities announced new trade restrictions to protect the country’s domestic beef industry.
Effective from January 1 and extending to the end of 2028, countries like Australia will be allocated an annual quota. Any beef exports to China beyond this volume will be slugged with a 55% tariff.
These new restrictions do not single Australia out in the way that previous Chinese trade restrictions did when relations soured in 2020. Nonetheless, the local beef industry quickly responded that it was “extremely disappointed”. Some voices have warned of a “severe impact”.
The Australian government also said it had “serious concerns” and that Australia’s status as a free trade agreement partner with China should be “respected”.
Smaller producers that built business plans around supplying the Chinese market are most vulnerable.
These latest Chinese restrictions reinforce a broader narrative that China is so focused on achieving self-sufficiency and “mercantilism” (maximising exports and minimising........