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Tuesday, November 3, 2020

Australia, China Trade Tensions Continue To Rise

China over the week imposed new bans on imports of products from Australia, including lobster and timber, with reports indicating that items like copper and sugar could also be targeted. The action resulted in clearance of Australian rock lobster shipments to be delayed in Shanghai on increased inspections.

On Friday, the General Administration of Customs of China (GACC) issued a warning notice to exporters saying that it had found a pest—the bark beetle Ips grandicollis—in imported log timber from Queensland and they banned all log shipments coming in from the Australian state. A China foreign ministry spokesman confirmed today that Chinese authorities have repeatedly found “biohazards” in imports of Australian timber.

Meanwhile, China rejected an appeal by Australia on tariffs that it imposed on Australian barley. Australia had sought a review of the tariffs which totaled more than 80.5% that were put in place earlier this year.

While the frictions between Australia and China are rising, it is not yet clear that the situation has prompted any shift of business yet to the