Australia Challenges China At The World Trade Organization
Dated : 18 Dec 2020 (IST)
The Australian government announced it would challenge China at the World Trade Organization over The hefty anti-dumping and anti-subsidy tariffs imposed by Beijing on Australian barley exports.
In view of fierce frictions between the two countries, it’s no surprise that Australia has taken such action. It’s believed Beijing must have prepared for this but the rest of the world will wait and watch to see who wins the suit.
Amid constantly strained China-Australia political ties, Australia has said that Chinese anti-dumping and anti-subsidy tariffs on Australian products are “political retaliation.” But China insists that trade is trade, and accuses Australia of politicizing economic and trade matters.
The evidence are mixed. Australia was the first country to ban Chinese tech company Huawei from the 5G rollout because it proved to be a huge security risk. Since 2018, it has turned down a dozen Chinese investment projects because of similar intrusive reasons. So far, Australia has launched as many as 106 anti-dumping and anti-subsidy investigations against Chinese products, while China only initiated four against Australia.
Intensifying China-Australia conflicts will be detrimental to the steady development of bilateral trade. It will motivate both sides to take legal means to crack down on the other side’s products. Provisions of trade agreements cannot be detailed enough to cover all commodity exchanges. A friendly atmosphere serves as an important condition for the steady advancement of trade. Without it, trade frictions within the framework of laws and rules will be an endless stream.
The problem with China is that it wants To dominate everyone and this is the disrupter of China-Australia political relations, which is obvious to all. But it seems Canberra has taken up the challenge with Beijing in a high-profile manner after seeing how India stopped the PLA in its track in Chinese Occupied Ladhak.
Australia does not want to jeopardize normal economic and trade exchanges with China. However bilateral cooperation has to be perforce viewed through the lens of national security and ideology. In case this is not done then we all are aware that what East India Company had done to India and rest of Asia. Even China has been a big victim of this kind of trading.
China’s on The other hand says that it’s anti-dumping and anti-subsidy investigations into Australian barley and wine are carried out in accordance with Chinese rules. There is no political implication. The demand from Australia is more than an approach of self-protection through legal means – it’s a typical political show.
China tells Canberra: Please take it as a real trade dispute at the WTO, rather than make it a farce with its prime minister, members of parliament, and media all involved and discuss whether Australia should strike a counterattack on China through iron ore trade. Isn’t it a lawsuit? China will respond in accordance with rules and settle it with Australia within rules.
Chinese think that Australia has turned itself to the frontline of China-West confrontation. It believes China will feel awe to it and the Western world will offer support. But the frictions between China and the West are different from those between China and the US in terms of both nature and intensity. Australia’s expectations of China and the West’s responses are wishful thinking.
