China Seen as 'No-Go' for Australian Exporters, SMEs
Current geopolitical issues, deteriorating relations and COVID-19 are making it “impossible” to continue relying on China, especially for small and medium-sized enterprises, a new report from the Australian Chamber of Commerce and Industry detailed. The group surveyed 189 Australian exporters and businesses, finding the difficulties with Chinese trade especially pronounced for small wine exporters. The problems stemming from the raising of tariff and non-tariff barriers by the Chinese government has made customer relationships incredibly difficult and “resulted in a complete cessation of trade.”
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“For those firms trading in the Asian region, especially with China, there is growing disillusionment with the difficulties of managing international relationships,” the report said. Exporting firms are looking to shift to other Asian markets such as Vietnam, Indonesia and Malaysia. Many of the difficulties began when Australian Prime Minister Scott Morrison called for an independent investigation into the origins of COVID-19, prompting Chinese tariffs on various Australian goods.