China has also restricted beef exports and imposed tariffs on barley imports in an attempt to hurt Australia’s economy.
The tariff on barley now stands at 80%, after the Chinese ambassador warned of crippling repercussions on Australia’s agricultural industry.
Australian winemakers have also said that any sanctions imposed on wine exports could effectively shut down the market.
The country’s Trade Minister Simon Birmingham said of the investigation: “This is a very disappointing and confusing development.
“Australian wine is not sold at lower than market prices and exports are not subsidized. ”
The Chinese Department of Education has also advised students to reconsider their studies in Australia, an industry valued at A $ 38 billion (£ 20 billion).
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According to government statistics in 2019, China accounts for 27.5% of all Australian imports and exports.
In 2019, China was the state’s largest trading partner, worth at least $ 252 billion (£ 137 billion).
Such is the escalation of tensions and the trade war between the two, the former Australian Prime Minister, Kevin Rudd had said that the conflict between the two was imminent.
Although Mr Morrison disagrees with the theory, the current prime minister admitted that conflict can no longer be ruled out.
He said earlier this month: “We recognized that what was previously inconceivable and was not even considered possible or likely in terms of these types of outcomes is no longer considered in these contexts.
“Today, the Indo-Pacific is the epicenter of strategic competition.
