China's Ministry of Commerce has announced Beijing will impose temporary anti-dumping duties on Australian-imported wine from November 28, a move that is likely to further boost trade and diplomatic tensions between the two countries.
Importers carrying products have to pay a deposit to the Chinese customs authority, where it will be calculated based on the different rates given to the manufacturing companies.
The required rate for Treasury Wine is 169.3%, which is the highest among all the wine companies mentioned in the statement. As a result, shares of Treasury Wine Estates Australia, the world's largest listed wine company, fell by more than 13%.
However, China's Ministry of Commerce did not elaborate on how long this measure would take.
China is the main market for wine exports as well as Australia's largest trading partner, accounting for 39% of total shipments in the first nine months of 2020.
Following that, Australian Agriculture Minister David Littleproud expressed his disappointment over China's decision by saying that this action was something that Australia would fight for vigorously.
The latest attack from China, however, failed to stop the rise for the Aussie dollar which climbed higher in today's trading session approaching the 2-month high following the weakness of the US dollar.
