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China takes Australia to WTO over anti-dumping measures on railway wheels, wind towers, and steel sinks.

Local producers of railway wheels, wind towers and stainless-steel sinks are now caught up in Beijing’s audacious Geneva attack.

Dan Tehan refused to rule out further action on behalf of industries caught up in Beijing’s campaign of trade retribution. Picture: Getty Images
Dan Tehan refused to rule out further action on behalf of industries caught up in Beijing’s campaign of trade retribution. Picture: Getty Images

China has launched a surprise volley of cases against Australia in the World Trade Organisation, with local producers of railway wheels, wind towers and stainless-steel sinks now caught up in Beijing’s audacious Geneva attack.

The cases appeared to be a tit-for-tat response to the Morrison government-supported WTO cases against devastating tariffs on barley and wine, part of Xi Jinping’s more than $20 billion campaign of trade strikes on Australia.

Australian officials were stunned by the Xi administration’s latest hit which was announced with a one sentence statement from Beijing’s Ministry of Commerce.

“We will robustly defend this case,” said Trade Minister Dan Tehan on Thursday evening.

Minister Tehan refused to rule out further action on behalf of industries caught up in Beijing’s campaign of trade retribution, which has also hit Australian beef, lobsters and coal.

“Where we think we have a strong legal case, and we think serious injury or damage has been done to industry here, we will look at all available options to protect and defend our industries.”

Wang Xining. Picture: Gary Ramage
Wang Xining. Picture: Gary Ramage

Chinese officials have hinted at possible retaliation against Australian action in the WTO for almost a year.

Wang Xining, the deputy head of the Chinese embassy in Canberra, last August said Australia had launched anti-dumping cases against Chinese producers of aluminium, copper and steel.

“If you interpret it as an economic coercion from Chinese government, I hope you could ask the Australian government whether it’s a hundred-fold or at least ten-fold economic coercion from the Australian government,” he told the National Press Club.

Mark Cain, chief executive of the Australian Steel Institute, the peak body for the sector, rejected Beijing’s characterisation of Australia’s anti-dumping system.

“It’s individual companies, not the government, that take dumping actions,” Mr Cain told The Australian.

“The dumping action is not against China — it’s against Chinese companies,” he said.

Mr Cain, whose members include some of the companies surprised by the Chinese government’s case in Geneva, denied any suggestion Australia’s anti-dumping process was politicised.

“It takes a lot of resources and effort. It’s costly to do it. And unless you’ve got a case that’s justifiable, it’s going to get turfed out,” he said.

“It’s a big bloody effort.”

There are currently 29 cases before the anti-dumping commission. Most involve metal products used in construction, energy production and mining.

Three involve only Chinese companies. Another nine cases involve Chinese exporters along with other producers from countries including Brazil, Indonesia, Thailand, Malaysia, Vietnam, South Korea and the Philippines.

Another seventeen cases do not involve China and include companies from the United States, Spain, Japan, Singapore, Romania and the United Arab Emirates.

Australia launched its WTO case against China’s crippling 80 per cent tariff on barley producers in December.

That tariff — which all but wiped out Australia’s barley exports to China — was imposed in May, a month after the Morrison government enraged Beijing by calling for an inquiry into the origins of COVID-19.

Another case opposing Beijing’s more than 200 per cent duties on Australian wine producers was lodged with the WTO last weekend.

Mr Tehan said the federal government wanted to “sit down and work through” the disputes with Australia’s biggest trading partner.

“The economic relationship is an incredibly important one for both nations. It’s grown significantly over the years and we want to see it maintained,” he said on Thursday evening.

“We do want constructive engagement with the Chinese Government. The economic relationship is an incredibly important one. It has helped to lift millions out of poverty in China and it has helped us maintain our standard of living.”

Read related topics:China Ties

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Original URL: https://www.theaustralian.com.au/nation/china-takes-australia-to-wto-over-antidumping-measures-on-railway-wheels-wind-towers-and-steel-sinks/news-story/81a14f0cda41642424107e5b78e05649