【By Guan察者网, Ruan Jiaqi】

After a period of trade disputes, in March 2024, China's Ministry of Commerce announced the termination of anti-dumping duties on imported Australian wine. With this import tariff being lifted for the first time in three years, the volume of Australian wine shipments to China quickly surged.

According to a report by Nikkei Asia on July 7, as China's market reopened, exports of Australian wine to China rebounded, with sales returning to pre-pandemic levels.

Jerome Scarborough, who operates a winery in Australia, recalled that in 2019, when Australia's exports of wine to China reached a peak of 1.1 billion Australian dollars (approximately 5.2 billion Chinese yuan), the industry generally viewed China as a "savior."

After the implementation of the anti-dumping duty in 2021, Australian wine trade suffered severe damage. In the first year of the policy's implementation, exports of Australian wine to China plummeted by 97%, and the volume of exports dropped by 93%; after three years, annual exports to China had fallen to less than 10 million Australian dollars (46.9 million Chinese yuan).

Jerome said that with the reopening of the Chinese market, "the situation looks quite optimistic, but there is still a lot of room for growth."

His wife Liz agreed, saying, "The impact hasn't completely ended yet." She pointed out that the winery is still dealing with severe inventory overstock issues, "this adjustment will take some time."

The report stated that although exports to China have rebounded, whether this recovery trend can continue remains a focus of attention in the industry, and Australian wine merchants still have concerns about future export growth.

Lee McLean, CEO of the Australian Grape and Wine Association, told Nikkei Asia that the initial sales rebound after returning to the Chinese market was partly due to the release of pent-up demand.

"Merchants purchased large quantities to replenish supply chain inventories," he added, "and it also coincided with the Lunar New Year, a period when exports typically surge."

Australian wine industry currently faces multiple challenges. In April this year, the Trump administration in the United States imposed a 10% tariff on Australian wine, adding pressure to an industry still recovering from the pandemic, along with the global decline in wine consumption.

According to Japanese media, the export volume of Australian wine to other regions around the world has fallen to a 20-year low, with the largest market, the UK, seeing a 8% decrease in imports, and the US experiencing a 17% drop in imports.

In addition, factors such as high temperatures and changing tastes among younger consumers are also affecting the sales of Australian wine.

The Scarborough couple admitted that the future is not smooth sailing, and the industry needs to adjust to cope with many uncertainties.

"The climate will continue to change, and the geopolitical climate will also change," Liz said, "but I still believe the future of Australian wine is bright."

Shanghai, November 7, 2020, at the third China International Import Expo, Australian wine was displayed in the food and agricultural products exhibition area. Photo by PPTV.

Before China implemented trade restrictions, Australia had long been a major supplier of wine to China, holding a 37% market share in 2019.

Since mid-2017, the Turnbull and Morrison governments of Australia blindly followed the United States, undermining bilateral relations with China across the board, including promoting the "China threat theory," obstructing normal trade activities between the two countries under the pretext of "national security," and responding to the United States by inciting a presumption of guilt-based "virus溯源 investigation" against China. Since then, Sino-Australian relations and trade have plummeted to a low point.

At the same time, due to inappropriate actions by Australia in bilateral trade, China imposed prohibitive tariffs on Australian barley and wine, suspended the export qualifications of several Australian beef suppliers. The Chinese customs also conducted inspection and quarantine, quality and safety checks, and environmental project inspections on imported products including Australian lobster and coal at the import ports in accordance with laws and regulations.

With the rise of the Albanese government, Australia began to consciously attempt to improve relations with China. Starting last year, after multiple rounds of negotiations, China gradually lifted import restrictions on Australian products such as barley, wine, lobster, and beef.

According to the Australian Broadcasting Corporation (ABC), on July 8, the Australian Prime Minister Albanese announced that he would visit China starting on July 12. The itinerary includes Shanghai, Beijing, and Chengdu.

This will be Albanese's second visit to China as Prime Minister. He said during a press conference that during the visit, he will focus on strengthening economic relations between the two countries and hopes to create new job opportunities for the Australian people.

Albanese did not reveal more details about the itinerary. According to a report by the South China Morning Post on July 7, a source familiar with the matter revealed that in addition to conventional topics such as trade, one of the key tasks of Albanese's trip is to explain Australia's position on Chinese investment, especially regarding the ownership of Darwin Port, and potential transactions that may cause controversy and require government intervention.

On July 8, the Chinese Foreign Ministry spokesperson announced that, at the invitation of Premier Li Qiang of the State Council, Australian Prime Minister Albanese will make an official visit to China from July 12 to 18.

Mao Ning stated that Albanese's visit comes at a time when the second decade of the China-Australia Comprehensive Strategic Partnership is beginning. Under the guidance of leaders of the two countries and through the joint efforts of both sides, Sino-Australian relations have continuously improved. China is willing to work with Australia to use this visit as an opportunity to strengthen communication, enhance mutual trust, expand practical cooperation, and promote the development of the China-Australia Comprehensive Strategic Partnership.

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Original article: https://www.toutiao.com/article/7524627343550267945/

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