China accuses Australia of trade violation and ‘damaging relations’

The jibes between the two countries have continued after Australia revealed it would complain to the independent trading umpire.

Australia has been “laughed at” for accusing China of breaching their free trade agreement, Chinese state-owned media says.

Trade Minister Simon Birmingham this week made a complaint to the World Trade Organisation over massive tariffs on barley exported to China.

But the Global Times on Thursday said it was China that should be resorting to international courts more often to protect its interests.

“It is Australia, instead of China, that is violating the terms of the agreement, “ the outlet wrote.

Australia’s ban on some Chinese investments, including vetoing Huawei from its 5G rollout, is being used as ammunition by China as the trade dispute deepens.

Guangdong Research Institute for International Strategies professor Zhou Fangyin told the Global Times that China hadn’t argued with Australia over “those violations”.

“But it should resort to the WTO more frequently to safeguard its interests now that Australia is damaging its relations with China,” he said.

Chinese Academy of International Trade and Economic Co-operation research fellow Song Wei told the Global Times that Australia raised the bar for Chinese companies after siding with the US, which had “seriously affected trade” between China and Australia.

China’s tariffs on Australian barley were “not a violation” of their free-trade agreement because a Chinese investigation concluded that the barley was sold below market prices that hurt local growers, she said.

This claim has been repeatedly denied by Australian authorities.

China’s foreign ministry spokesman Wang Wenbin maintains that China operates within the rules. Picture: Greg Baker / AFP

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China’s foreign ministry spokesman Wang Wenbin on Thursday said China abided by World Trade Organisation rules.

“The discriminatory practices of the Australian side against Chinese enterprises are not in line with the principles of market economy and international economic and trade rules,” he said.

“We hope that the Australian side will adopt practical measures to correct them.”

But Treasurer Josh Frydenberg told Today that Australia would make no apologies for protecting and preserving its national interests.

“Where those trade tensions can be resolved bilaterally, we would obviously like to do so,” he said.

“Where they can’t, we reserve the right to use multilateral forum.”

China’s demand for Australian iron ore has resulted in prices soaring to record highs in recent weeks.

The development prompted an economic boost in Australia’s mid-year economic outlook.

Mr Frydenberg said this showed that economic relationship was “mutually beneficial”.