In a letter to the World Trade Organization (WTO) on Thursday, Australia accused China of resorting to disruptive trading practices that threaten the business community worldwide. The remarks come amid regular international reviews of China’s trade policies.
In the letter, the Australian ambassador to the Organization, George Mina, blamed China for targeting several commodities, including barley, cotton, wine, meat, rock lobsters, coal, and hay due to its political rivalry with Australia. “China says that these actions reflect legitimate trade concerns, but there is a growing body of information that demonstrates China’s actions are motivated by political considerations,” the letter stated.
It further referred to several Chinese officials who in the past have linked these trade actions to broader issues in bilateral relations. Concerning this, the letter mentioned Chinese foreign ministry spokesperson Zhao Lijian, who threatened Australia with punitive trade measures. “WTO rules do not permit a member–however large–to impose conditions such as these on trade with another member,” it added.
Furthermore, Australia alleged that China has consistently tested global trade rules by engaging in practices that violate its commitment to the WTO. It elaborated that China’s actions have a far-reaching impact and make the Chinese market volatile for the global business community.
To this end, the letter stated: “By undermining agreed trade rules, China also undermines the multilateral trading system on which all WTO members rely. These rules have underpinned members’ growth and prosperity for decades. They protect the rights of members regardless of their size and power. China has assured members of its commitment to the rules-based order, but from our viewpoint, there is a growing gap between China’s rhetoric and its actions.”
Concluding the letter, Australia urged China to align with trade practices to benefit the global community.
Over the last 18 months, Chinese trade sanctions and disruptive measures, including unreasonable and frequent border checks and unjustified anti-dumping duties, have increased. Additionally, Australia accused China of disrupting the trade of commodities, such as beef, citrus fruit, grains and grapes, and limiting market access for dairy products and meat, among other items. Consequently, Australian exports to China fell by 77%, from $1 billion a year to $274 million.
Nevertheless, the impact of trade sanctions and anti-dumping duties on Australian products remain limited due to China’s increased purchase of iron ore and liquified natural gas. Moreover, in light of Chinese sanctions, Australian producers diversified their sales to South East Asia and Europe, effectively reducing their dependence on China.
Australia is not the only country that has slammed China over disruptive trade practices. Canada, too, has accused China of using coercive economic measures amid political disputes. Similarly, Japan and the European Union have claimed that China lacks transparency and uses domestic security provisions to harm foreign companies.
Australia Accuses China of Disruptive Trade Practices in Scathing Statement to WTO
The Australian ambassador to the WTO accused China of resorting to disruptive trade practices motivated by political rivalry and urged the Asian giant to align with global trading rules.
October 21, 2021
SOURCE: SOUTH CHINA MORNING POST