The Australian government is optimistic that heavy tariffs on its wine imports will soon be lifted by the Chinese government, according to a business lobby. During a 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 in an interview with Bloomberg at the Boao Forum in China that while Australian businesses value the Chinese market, they are concerned about its unpredictability and uncertainty.
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 between Australia and China. Despite this progress, there are still significant challenges for Australian producers seeking to export their wine to China due to ongoing trade sanctions imposed during the peak of tensions. Currently, tariffs on Australian wine reach as high as 218%. However, the Australian government hopes that these tariffs will be lifted by the end of March.
If tariffs are removed, Olsson expressed optimism that a significant amount of Australian wine will be able to re-enter the Chinese market once again. 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, the relationship between Australia and China is expected to remain complex, with ongoing geopolitical tensions shaping their economic interactions.
