Tension escalates between China and Australia over anti-dumping measures

China announced that it has lodged a lawsuit against Australia's anti-dumping measures on a variety of products, on Thursday, at the World Trade Organization, escalating tensions between the two nations.

The suit, which concerns railway wheels, wind turbines, and stainless steel sinks from China, comes only a week after Canberra challenged Beijing's crushing duties on Australian wine exports. Its goal, according to Chinese trade ministry spokesperson Gao Feng, is to "protect the lawful rights and interests of Chinese enterprises."

"We expect that Australia would take meaningful steps to remedy its wrongdoings, eliminate trade distortions in similar items, and restore normalcy to such trade as soon as feasible."

Since 2019, Australia has put tariffs on Chinese-made railway wheels and wind turbines. Australia would "vigorously defend the tariffs that we have placed in place," Trade Minister Dan Tehan told reporters in Canberra. Despite Canberra's desire for "constructive interaction with the Chinese leadership," he said the restrictions were put in place "after a thorough examination."

"It's a question you'd have to ask China why they've taken this step now," he continued.

China placed duties on Australian wines of up to 218 percent in November, claiming that they were being "dumped" into the Chinese market at subsidised rates.

According to official data, the crackdown effectively shut down Australia's largest international wine market, with sales plummeting from Aus$1.1 billion (US$840 million) to barely Aus$20 million. Prime Minister Scott Morrison has underlined that nations attempting to employ "economic coercion" against Australia will face harsh consequences

Last week's decision "to preserve Australia's winemakers" came six months after Canberra filed a second WTO complaint about duties on Australian barley, whose exports to China were valued at approximately $1 billion per year.

In recent months, Beijing has placed severe economic sanctions on a variety of Australian exports, ranging from high tariffs to disruptive activities in the agriculture and tourist industries.

Gao said on Monday that China "opposes the misuse of trade remedy measures, which not only harms Chinese enterprises' legitimate rights and interests, but also undermines the solemnity and authority of WTO rules."

However, the retaliatory actions are generally viewed in Canberra as retaliation for openly calling for an inquiry into the origins of the coronavirus epidemic, refusing Chinese investment in critical sectors, and publicly opposing Beijing's efforts to impose influence in Australia.

A summit of the G7 advanced countries earlier this month reiterated Australia's demand for a stronger approach against China's economic policies and global assertiveness.

The conference closed with the unveiling of US-led measures to oppose China's trillion-dollar "Belt and Road Initiative," which is the centrepiece of the country's ambitions to expand economic influence throughout the world.