After 12 months of the trade war, Australian farmers and miners targeted by a barrage of sanctions from China are developing new trade ties. They are now actively exploring new markets for their products. Local winemakers shifted their focus to Hong Kong.
China's trade war with Australia is not widely covered in the media. However, the impact of this conflict on Australian business is rather high. The relations between the two countries escalated after Australia's call for an international investigation into the origin of the coronavirus in October 2020. At first, Beijing stopped purchases of a number of Australian goods: coal, copper, lumber, barley, sugar, wine, and lobsters. China’s ban on the import of Australian wine delivered a severe blow to the wine producers. Australia’s authorities even filed a formal complaint about this to the World Trade Organization (WTO).
However, China’s government remains adamant. Therefore, manufacturers are forced to look for new markets. The winemakers found them in Hong Kong. Amid a 45% drop in exports to mainland China, shipments to Hong Kong soared by 111% in 12 months to $136.7 million. As for other industries, China is still the largest market.
