China sparks global trade war fears after hitting Australia with huge 80% tariff as punishment for demanding virus probe
CHINA has sparked fears of a global trade war after imposing an extraordinary tariff on Australian barley exports.
It comes after Scott Morrison, the Australian Prime Minister, demanded an independent probe into the origins of the coronavirus outbreak.
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In response to the criticism, Chinese leaders warned of trade punishment that could wipe $135billion from the Australian economy.
China today announced an 80.5 per cent levy on barley exports starting on Tuesday – with the tax set to remain in place for five years.
Trade minister Simon Birmingham indicated Australia may appeal the imposition of a 73.6 per cent anti-dumping tariff and a 6.9 per cent anti-subsidy tariff applied to all Australian barley from Tuesday.
BARLEY EXPORTS
He said in a statement: “Australia is deeply disappointed with China’s decision to impose duties on Australian barley.
“We reject the basis of this decision and will be assessing the details of the findings while we consider next steps.
“We reserve all rights to appeal this matter further and are confident that Australian farmers are among the most productive in the world, who operate without government subsidy of prices.”
Barley is considered one of Australia’s top three agricultural exports to China but since 2018 has been at the centre of dumping allegations.
China’s Ministry of Commerce announced the tariffs late on Monday after completing a 16-month investigation into an anti-dumping complaint.
“The investigating authority has ruled that there was dumping of imported barley from Australia and the domestic industry suffered substantial damage,” a statement on the ministry’s website said.
TRADE PUNISHMENT
The tariffs are a significant blow to Australia’s barley trade with China, which is understood to cover about half of all barley exports.
On Monday night, Trade Minister Simon Birmingham left open the option of Australia appealing to the World Trade Organisation, ABC reports.
Senator Birmingham said in a statement following the news: “Australia is deeply disappointed with China’s decision to impose duties on Australian barley.
“We reserve all rights to appeal this matter further and are confident that Australian farmers are among the most productive in the world, who operate without government subsidy of prices.”
It comes after more than 110 countries have backed a push for an international coronavirus inquiry.
China’s foreign minister, Wang Yi, condemned foreign political leaders for politicising the pandemic.
The WHO’s director-general, Tedros Ghebreyesus, promised an investigation will be launched as soon as possible.
China’s president Xi Jinping said his country supported a “comprehensive evaluation of the global response”.
He added: “This work needs a scientific and professional attitude, and needs to be led by the WHO; and the principles of objectivity and fairness need to be upheld.”
A spy dossier has claimed China lied to the world about coronavirus by covering up the outbreak.
The dossier, from the Five Eyes intelligence agencies of the US, Canada, the UK, Australia and New Zealand, stated that China‘s secrecy surrounding the virus led to an “assault on international transparency”.
It said: “Despite evidence of human-human transmission from early December, PRC authorities deny it until January 20.
“The World Health Organisation does the same. Yet officials in Taiwan raised concerns as early as December 31, as did experts in Hong Kong on January 4.”
Last month, a group of American lawyers said they are suing China for trillions of dollars for the economic damage caused by the coronavirus pandemic.
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The suit, filed in Florida last month, has claimants from over 40 countries and alleges that negligence and cover-ups by the Chinese Communist Party allowed the deadly virus to break out.
As the search for the origin of Covid-19 continues, biologists have now found evidence suggesting the virus was “pre-adapted to human transmission”, the Mail on Sunday reported.
The study raises the possibility that the virus may have escaped from a lab in Wuhan, which was known to be studying coronavirus like diseases in bats.
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