China trade strike to lob in WTO

After months of downplaying the threat from China’s repeated trade strikes, it has been revealed how Australia will fight back.

China’s escalating trade war against Australia is heading for a showdown in the World Trade Organisation as Scott Morrison says he’s “very concerned” about Beijing’s latest moves.

Following China’s crippling strike against wine producers on Friday, the Prime Minister said the “tensions” with Australia’s largest trading partner were worrying.

“As a government, we will be looking to see how we can get a number of our producers through this difficult time,” he said.

Prime Minister Scott Morrison has conceded trade tensions with China are very concerning. Picture: Adam Taylor

It is understood Mr Morrison was referring to expanding trade agreements and developing new markets rather than any direct support for producers which could breach trade rules.

His comments came as Trade Minister Simon Birmingham said Australia was “actively discussing” pursuing a case in the WTO against China over its decision to slap tariffs on barley.

The $1 billion barley trade was China’s first target in the trade war, but has been followed by strikes against a range of commodities including beef, coal, cotton, timber and lobsters.

Tensions mounted further on Friday when China announced crippling tariffs of up to 212 per cent on Australian wine.

Senator Birmingham yesterday told ABC’s Insiders Australia he was disappointed Chinese authorities had rejected compelling evidence that refuted allegations in the barley case.

Australian wine is set to be a rare sight on Chinese liquor store shelves soon after Being slapped tariffs of up to 212 per cent on imports. (Photo by STR / AFP) / China OUT

He said taking the matter to the WTO was the next step, but acknowledged “different opinions” within the barley sector about whether that action should be launched.