China not targeting Australia: Morrison

Prime Minister Scott Morrison has hosed down speculation China is planning further trade sanctions on Australian products.

Speaking to journalists in Sydney today, Mr Morrison said China had claimed it was not targeting more Australian industries for trade sanctions.

Wine, timber, sugar, coal, lobsters and barley were all in the firing line, according to newspaper reports.

“I simply note that is not what China has said they’re doing,” Mr Morrison said. 

“China has denied that is what they are doing and I can only take that at face value out of respect for the comprehensive strategic partnership we have with China and to work through the channels that we have under that relationship to address the issues that have arisen.

“Now, those issues are matters that the trade minister and I obviously have concerns about and are working closely with industry to pursue the appropriate channels within the relationship to seek to get some clarity and some resolution of those, but I simply note that what you've suggested is something that China has denied. 

“And so that, you know, I can only refer you to what they've said they're not doing. 

“And on that basis, I will take that at face value and we'll continue to work through the process.”

It followed an unnamed source in some media who said Australian goods may not be allowed through Chinese customs after Friday.

But another unnamed source told Business News it was not yet confirmed what might happen, but it was nonetheless important to be prudent.

Victoria-based Treasury Wine Estates chief executive Tim Ford told the company’s shareholders at its AGM today that it had not received any advice or notification from the Chinese authorities about an embargo on Australian exports.

The news comes as lobster and coal exports from Australia to China have been delayed and timber exports from Queensland have been banned in recent weeks, while it has been suggested retrospective tariffs could be applied to wine. 

Yesterday, Treasury Wine Estates advised the ASX the Chinese Alcoholic Drinks Association had applied to the Ministry of Commerce requesting imports of Australian wine in containers of two litres or less into China could be subject to retrospective tariffs.

It said it was unclear whether this application would be successful.

The Chinese government launched two investigations into the wine industry earlier this year, one into anti-dumping and another into alleged subsidies. 

Over the weekend, there were clearance delays in China for some Australian lobster shipments as new inspection processes were being implemented, according to the Western Rock Lobster Council. 

The council posted a statement to its website which said exporters were working hard to restore trade with China as soon as possible.

“Members of the Seafood Trade Advisory Group are in regular discussions with our federal and state governments to ensure they understand the importance of the strong relationship we have developed over decades with our importers,” the statement said.

“These trading relationships are underpinned by mutual trust and respect and need to be supported by governments.

“We appreciate the right of countries to implement border inspection processes that ensure food safety for their citizens.

“Australia has a world-class reputation for premium wild-caught rock lobster that meets the highest standard of food safety and quality of any government compliance system.”

China banned timber imports from Queensland, after it said it found live pests. 

A spokesperson from the Forest Industries Federation WA said no local timber had been affected at this stage.

In October, it was reported that some of BHP's coal exports to China had been stalled. 

Barley was also hit with tariffs earlier this year.

Grain Trade Australia chief executive Pat O’Shannassy said the organisation strongly advocated for rules-based trade, and hoped politics could be kept out of it.