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Email Content: Poultry Industry News, Comments and more by Simon M. Shane

China Exercises Retribution on Australia Over COVID Rhetoric-Is there a Lesson for the U.S.?


China has suspended imports of beef from major packers in Australia.  Exports of Australian beef to China amounted to $2 billion in 2019 and the nation is the third largest supplier after Brazil and Argentina.


Observers suggest that politicians in Australia calling for an independent inquiry into the origins stimulated the response that included an 80% tariff on barley from Australia. China normally imports half of the barley produced in Australia worth approximately $1.5 billion annually. The spurious justification for this action is that growers benefit from water resources provided by the government, now regarded "suddenly" as a subsidy. by China


Major beef producers are criticizing domestic politicians and are requesting that they tone down their rhetoric concerning the origin of COVID-19 virus that appears to be an extremely sensitive issue with China. 


Superficially, China maintains that orders have been cancelled bases on “labeling issues”. Previously, two companies were banned for a period in 2017 due to problems with labels and documentation.


The action by China is intended as a message to other trading nations following their ancient principle of “killing the chicken to frighten the monkey”  

Copyright © 2020 Simon M. Shane