China has ordered traders to stop purchasing at least seven categories of Australian commodities, ratcheting up tensions with a key trading partner in its most sweeping retaliation yet. Commodities traders in China won’t be able to import products including coal, barley, copper ore and concentrate, sugar, timber, wine and lobster, according to people familiar with the situation. The government has ordered the halt to begin on Friday, one of the people said, asking not to be identified as the information is sensitive.
The notice was verbally relayed to major traders in meetings in recent weeks, one of the people said. Iron ore, Australia’s biggest export to China, won’t be included in the halt, the people said.
The order represents a dramatic deterioration in ties, which have been strained since Australia barred Huawei Technologies Co. from building its 5G network in 2018 on national security grounds. Relations have been in free fall since Prime Minister Scott Morrison’s government in April called for an independent probe into the origins of the coronavirus.
China’s relevant departments conducted inspection and general quarantine measures on certain Australian goods according to laws and regulations, Foreign Ministry spokesman Wang Wenbin told a briefing Tuesday in Beijing. China hopes Australia will do more so that bilateral relations can get back to normal soon, he said.
China’s customs authority and Ministry of Commerce didn’t respond to faxes seeking comment.
At least one customs clearance company started halting shipments across the seven types of products on Tuesday, a person said. China will also ban shipments of Australian wheat from a yet-to-be-disclosed date, according to the South China Morning Post, which earlier reported the impending bans on other Australian commodities.
Australia’s government is working with the domestic industry and making enquiries with the Chinese authorities about the reports, according to an emailed statement from Trade Minister Simon Birmingham.
“China has consistently denied any targeting of Australia and spoken about its commitment to trade rules,” the statement said. “In the spirit of their statements, we urge relevant Chinese authorities to address concerns of sectors like the seafood trade to ensure their goods can enter the Chinese market free of disruptions.”