News: On Friday, China’s Ministry of Commerce (MOFCOM) announced the termination of anti-dumping and anti-subsidy duties on barley imported from Australia, effective from Saturday. The decision comes as changes in China’s barley market have rendered these duties unnecessary.
In May 2020, MOFCOM had imposed a 73.6 percent anti-dumping duty and a 6.9 percent countervailing duty on Australian barley imports for a five-year period. However, at the request of the China Alcoholic Drinks Associations in April, the ministry reviewed the necessity of continuing these duties and concluded that they were no longer required, given the evolving conditions in the Chinese barley market.
Experts view this move as a positive step in improving China-Australia relations, especially amid thawing ties between the two countries. They expect the momentum of bilateral trade and economic exchanges to continue in various sectors.
Ending the duties is expected to have a beneficial impact on downstream industry players and consumers. The reduction in barley procurement channels and the increased risks in securing a stable domestic barley supply had previously burdened downstream businesses with additional operating costs.
Australia had been China’s largest source of barley in 2019. However, after the imposition of duties, barley imports from Australia had been declining gradually. The end of these duties is seen as a favorable development for Chinese manufacturers and consumers, particularly in the context of rising market demand for high-quality beer.
Both countries have been witnessing a boost in trade cooperation, with more untapped potential as the ties strengthen. However, experts advise Australia to continue with pragmatic practices and strategic determination in its approach to the relationship with China, rather than following the US and taking sides.
The trade between China and Australia in the first half of 2023 reached $116.16 billion, marking a year-on-year increase of 8.6 percent, according to data from Chinese customs.