China has sued Australia at the World Trade Organization (WTO). Beijing finds punitive charges imposed by the Australian government against the People’s Republic unjustified.
It is already the third case between the two countries before the international arbitrator for trade disputes. Tensions between China and Australia have long been raging over conflicts over 5G and the coronavirus.
Australia levies extra high taxes on imports of train wheels, windmill poles and stainless steel sinks from China because they would be dumped cheaply on the Australian market due to state aid. China now wants to defend itself against these trade barriers before the WTO.
Australia announced earlier this month that it would drag China to the WTO. The Asian country introduced import duties on Australian wine, which the government of Prime Minister Scott Morrison does not like. China claims that the wine is being dumped below the market price due to subsidies.
China was Australia’s largest trading partner, but since that country decided in 2018 to exclude Huawei from the construction of the 5G network, the relationship deteriorated.
The situation worsened after Morrison called for an independent investigation into the origin of the coronavirus in the Chinese city of Wuhan. In addition, the Australians hinted at the possibility that this could have escaped from a research lab.