Australian company Champion Wool Factory showcases its wool products at the China International Consumer Products Expo in Haikou, capital of southern China’s Hainan Province, May 8, 2021. Photo: Zhang Hongpei / GT
China has increased Australia’s wool import quota in 2022 by 5 percent from 2021, according to a joint statement released on Wednesday by China’s Ministry of Commerce and General Customs Administration.
An industry insider said the move was a direct reflection of China’s active response to market demand instead of using so-called “economic coercion” in bilateral trade as some have claimed. Australian government officials.
The import quota for Australian wool in 2022 is set to be 40,203 tonnes, an increase of 5% from 38,288 tonnes in 2021, according to the Chinese Ministry of Commerce website on Wednesday, despite the deterioration of bilateral relations. created by the Australian government that have cast a shadow of uncertainty over a number of Australian export-oriented products including wine, beef and barley.
The increase in quotas has increased by 5% year on year in the context of the bilateral free trade agreement signed in 2015, according to media reports.
The decision to increase Australia’s wool import quotas next year is clearly a refutation of Australia’s claims that China is engaging in so-called economic coercion and waging a trade war with the Australia, Chen Hong, professor and director of the Australian Studies Center at East China Normal University, the Global Times told the Global Times on Wednesday.
“This action shows that China has always acted in accordance with market conditions. Besides, it also shows that the demand in the Chinese market is still there,” Chen said.
The Australian government has hysterically accused China of using so-called economic coercion to prevent its goods from entering the country, and even pushed for a WTO investigation into China’s anti-dumping tariffs on Australian wines.
“The Morrison government should end its baseless claims against China regarding ‘economic coercion’,” Chen said.
The strained relationship between the two countries following the Australian government’s provocative approach against China has seriously shaken market and business confidence in Australian products.
While Australian wool accounted for at least 80% of China’s wool imports, Chinese companies previously managed to diversify their sources of supply in order to secure the supply chain.
Despite the increase in quotas, experts said it took time for market confidence in Australian products to be fully restored, given Australian officials’ growing hostile stance against China throughout the year. .