PUBLISHED: 20:32, Tue, Nov 3, 2020 | UPDATED: 20:32, Tue, Nov 3, 2020
Tensions between Australia and China have reached crisis levels with the latter now banning the import of coal, barley, copper ore, sugar, timber and wine. The measures are set to begin on Friday and could have widespread consequences for Australian traders. China has already slapped tariffs on barley and wine in order to hit back after Australia banned Huawei from participating in its 5G network.
According to a source in the Chinese government, the ban will begin on Friday in a serious blow to Australia’s trade with the state.
Australia exports $1.2billion (£658million) dollars of wine to China every year, thus causing a large black hole within the state's trade.
Tony Battaglene, chief executive of wine industry group Australian Grape and Wine said: “There’s a very consistent message coming out, which is that Friday is D-day, and it’s not just about wine it’s about a whole lot of products.”
Not only is China attempting to punish Australia for standing up to the state but some experts believe Beijing is attempting to show the costs of political disagreements to other countries.
Australia set to be by trade block (Image: PA)
Xi Jinping (Image: PA )
Richard McGregor, a senior fellow at Sydney-based think tank the Lowy Institute, told Bloomberg: “China seems determined to punish Australia and make it an example to other countries.
“They want to show there’s a cost for political disagreements.”
Trade with China is vital for Australia and will prove even more so to help the state recover from the coronavirus pandemic.
According to figures, China’s share of Australian