Agriculture & Food

In the past year, Australia’s tense relations with China have caused the country’s lobster, red wine, and barley industries to be hit by China’s trade sanctions, and many exporters’ livelihoods are "hanging a thread." However, despite the damage to trade, the Australian government has stepped up its "hostility" towards China, and recently tore up the "Belt and Road" agreement between Victoria and China. Australian media commented that Australia thought it could coerce China, which would prove to be futile. For unhelpful behavior, it is time for the Australian government to stop bluffing.

[Australia's many trade industries are severely damaged]

The Great Australian Open reported that in the past year, Australia-China relations have plummeted, and China’s trade sanctions against Australia have hit industries such as lobster, red wine and barley, and many exporters’ livelihoods are “hanging a thread”.

——The lobster industry faces a devastating blow

The article said that in recent years, the Chinese market has accounted for 96% of South Australian rock lobster exports. For lobster companies, the loss of the Chinese market is a devastating blow.

Lobster prices have collapsed. For Australian fishermen who fish for lobsters, the price of lobsters that used to be sold at 80 Australian dollars or even higher has now fallen to as low as 25 Australian dollars, which is almost a loss.

——The trade volume of meat processing companies suffers

Lobster is just one of many Australian industries hit by China's trade sanctions. Other industries include beef, wine and barley.

Before trade sanctions hit in 2020, beef was Australia's largest agricultural export product, and exports to China at that time were soaring. In May 2020, China suspended the import of meat from Australia's largest meat slaughter partner and three large meat factories in Queensland. This trade interruption forced Australian meat processing companies to lose 10% of their trade volume.

——The share of wine exports has fallen sharply

At the end of November 2020, China imposed additional tariffs on Australian wine, and Barossa became the most affected wine region.

Before tariffs were imposed, 40% of Australian wine and 50% of red wine were exported to China. Now, the export share is almost zero.

Tony Bartaglen, head of the Australian Grape and Wine Association, said the 212% tariff has already brought a "destructive blow." "We have to find another export market for wine worth 1.1 billion Australian dollars."

——The end of barley exports to China

In May 2020, China claimed that Australia dumped barley into the Chinese market at a price below cost and imposed a tariff of more than 80% on Australian barley.

Doug Smith, head of the Western Australian Grain Group, said, "This has had a huge impact. Our exports to China ended with this."

However, due to the "export disaster" caused by the tension between Australia and China, various industries did not lobby the government to soften relations with China.

[Australian media: Do you really think you can scare China? 】

The Great Australia Net article also stated that the Australian Federal Government "resisted" economic pressure from China, but would not pay for the many operators who were unable to sustain their livelihoods due to trade issues. Not only that, but the Australian government has intensified its "hostility" towards China in the next period of time.

Last week, the Australian Foreign Minister used national security as an excuse to abolish the “Belt and Road” agreement reached between the Victorian government and China. This move may trigger more trade response measures from China. In industries such as rock lobster fishing and wine brewing in South Australia, companies that rely heavily on exports to China will find it difficult to survive.

Australia’s “Canberra Times” also published an article on the 26th, criticizing Australia’s Foreign Minister Mary Spean for not grasping the opportunity to reopen communication between Australia and China. Instead, “unnecessarily and provocatively” announced that the Australian government would cancel Victoria’s relationship with the State of Victoria. The "One Belt One Road" agreement signed by China. The newspaper said that this appeared to be a "sudden and unthinking decision."

The Canberra Times stated, “We believe that the government is acting for Australia’s benefit-although it is sometimes difficult to understand this. But if you think Australia can coerce Beijing, this will ultimately prove to be a futile act. Canberra needs it now. Yes, it is to find some way to start rebuilding (Australia-China) relations. But the current government only seems to know how to dig the scab until it bleeds."

The article also pointed out that this Australian government has become a "cunning card player" and "one day, its cards will be exposed." At the end of the article, it also emphasized that when the Australian government "braves to scare people", "it's time to end."