China denies trade ban reports: Simon Birmingham

China denies it has any plans to ban Australian exports worth $6bn a year, Trade Minister Simon Birmingham says.

Trade Minister Simon Birmingham. Picture: Gary Ramage

China has denied its plans to ban Australian exports worth $6bn-a-year from Saturday, Trade Minister Simon Birmingham says.

Speaking the day before the mooted ban’s imposition, Senator Birmingham said reports of a widespread ban were “unsubstantiated rumours”, despite a slew of trade issues with Beijing in months.

“Chinese authorities have denied some of the rumours of instructions being given to businesses to ban Australia’s imports into Australia,” he said in Adelaide.

“We welcome those commitments and statements from Chinese authorities that these rumours do not have validity.

“What we hope to see is that, given the denials from Chinese authorities, they work as effectively as possible to help, where there are regulatory issues, resolve them in a timely way.”

The denial came after senior Morrison government officials on Thursday advised China-exposed businesses to “find other markets” during a crisis phone hook-up on Thursday ahead of a threatened ban on exports worth $6bn a year.

Industry participants on the call told The Australian the Thursday afternoon hook-up was organised by the government’s key trade agency, Austrade, and included a briefing from Australia’s trade counsellor in Beijing and senior officials from the ­Department of Agriculture. “Find another market,” was one summary of the meeting.

“The basic takeout was that things are not going to get better,” said another, who asked not to be named because of the political sensitivities of the briefing.

Australian companies that last year exported $149bn of goods to China have been rattled by this week’s reports of a ban on Australian wine, lobster, copper, sugar, timber and coal exports entering China after Friday. Shares in Treasury Wine Estates, Australia’s biggest wine seller, fell by more than 8 per cent, or $500m, on Thursday, as anxiety swelled over its exposure to China.

The Global Times had earlier reported China had “halted seven categories of Australian goods from the market,” contradicting official ­Chinese denials about the discriminatory trade ban.

That apparent confirmation was published hours after China’s President Xi Jingping gave a keynote address at the China International Import Expo.

“Our aim is to turn the China market into a market for all the world, a market shared by all, and a market accessible to all,” Mr Xi said in his video address.

Fears among exporters rose after Australian wine destined for the Shanghai trade show was blocked at Customs. More than $2m of live Australian rock lobster was spoiled after a four-day delay at Shanghai Pudong Airport.

TWE chief Tim Ford said the company had not experienced any trouble at Customs with its ­labels, which include the hugely popular high-end Penfolds range.

China’s Ministry of Commerce in Beijing told The Australian on Tuesday reports about the ban were “rumours”, a quote which has been picked up in the Chinese-language media.

Despite months of trade drama, Australia is on track to export its second highest level of goods to China after selling more than $108b in the first nine months of the year.

James Laurenceson, director of the Australia-China Relations Institute, said if the ban went ahead it would be “catastrophic for China’s reputation as a trading partner that plays by the rules.”

“Australian businesses who previously served as examples of the benefits that engagement with China brings will be turned into cautionary tales,” Professor Laurenceson said.

“Even if the measures don’t unfold, the mere fact that Chinese state media have been allowed to run with the rumours will cause Australian businesses to re-evaluate their China engagement,” he said.

Additional reporting: ELI GREENBLAT