Australia's trade war with China is intensifying, and Chinese state media now report that imports of seven categories of Australian products will be restricted. For the first time, agricultural products are included, after dairy had already been affected. China is Australia's largest trading partner.
One-third of Australia's agricultural exports are sold to China, and there is growing concern that companies may become entangled in escalating diplomatic tensions. The tensions between the two Asian powers have increased due to Australian accusations of political interference and cyber espionage, as well as the coronavirus pandemic.
It is called "very disturbing" that Chinese buyers have been instructed by Beijing not to purchase Australian coal, copper, wine, barley, sugar, lobsters, and timber. The reasons are unclear, and Australia is awaiting answers. The Australian Minister for Trade, Tourism and Investment said that Chinese authorities denied that coordinated efforts were being made against Australia.
Two years ago, Australia banned the Chinese telecom giant Huawei from its 5G network due to national security concerns. Since then, there have been accusations of Chinese interference in Australia's domestic politics and cyber espionage, as well as the detention of Australian citizens in China.
Canberra has also taken a firmer stance on territorial issues in the South China Sea. As a result, bilateral relations are at their worst in decades.
Beijing has accused Australia of "anti-China hysteria." Canberra's earlier call this year for a global investigation into the origin of COVID-19 further angered the Chinese. Chinese state media accuse Australian Prime Minister Scott Morrison of "rashly participating in the US government's attempts to contain China."