China announced Friday that it will eliminate additional duties on Australian barley, marking the latest easing of relations between the two countries after years of conflict.
In 2020, Beijing levied significant tariffs on vital Australian exports such as barley, beef, and wine, flexing its economic strength at a time when the country was embroiled in a severe battle with the then-conservative government.
It also halted imports of some of Australia’s most important commodities, including coal, resulting in billions of dollars in trade losses.
However, China’s commerce ministry announced on Friday that it was “no longer necessary to continue to impose anti-dumping and countervailing duties on imports of barley originating in Australia due to changes in the Chinese barley market.”
In response, Australia announced that it would withdraw a retaliation complaint against the world’s second-largest economy from the World Trade Organization, which had been postponed earlier this year as the nations’ trade ministers stepped up negotiations.
“We welcome this outcome, which paves the way for our barley exporters to re-enter the Chinese market — benefiting Australian producers and Chinese consumers,” Foreign Minister Penny Wong said in a statement.
Canberra’s measures on overseas influence operations, its ban on Huawei from 5G contracts, and its desire for an independent probe into the origins of the Covid-19 outbreak have enraged China.
Their frigid relations, though, appear to have warmed since Australia’s centre-left government adopted a less combative policy to China after winning victory a year ago.
Recent economic data issued by Beijing indicate that the country’s post-Covid recovery is losing speed, growth is weakening, and calls for government assistance are increasing.
The easing of tensions with Canberra comes as Chinese President Xi Jinping has taken a more pragmatic approach to China’s international ties, including a resumption of discussions with the US.
