Unpredictable Future: Australian Wine Imports in China’s Economic Ties

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

The Chinese government is considering lifting heavy tariffs on Australian wine imports, according to a business lobby. During a recent meeting with Chinese Foreign Minister Wang Yi, the Australia China Business Council emphasized that China was “opening up” to foreign investment. The National President of the lobby group, David Olsson, expressed his concerns about the unpredictability and uncertainty in long-term investments in an interview with Bloomberg at the Boao Forum in China.

Olsson noted that Australian business leaders understand that they cannot expect a return to the pre-tension era and acknowledged that geopolitical issues will continue to influence relations. Despite progress in economic ties between Australia and China since the Labor government took office in May 2022, the heaviest remaining sanctions are still 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.

If tariffs are lifted, Olsson expressed optimism that a significant amount of Australian wine will re-enter the Chinese market. However, not all of it will return as many producers are also looking to diversify and explore other markets to reduce their dependence on China. Overall, it is expected that the relationship between Australia and China will remain complex, with ongoing geopolitical tensions shaping their economic interactions.

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