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China warns Australian economy could 'suffer further pain' after reported export ban

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Chinese state media warned Australia's economy could suffer further pain.(ABC News: GFX/Jarrod Fankhauser)

Chinese state media has warned "Canberra only has itself to blame" in an editorial published on China Daily.

It comes after a Communist Party tabloid seemed to confirm unprecedented suspensions this week on seven Australian export products to China, including wine and coal, in a multi-billion-dollar blow.

The editorial accused Australian Prime Minister Scott Morrison of "rash participation in the US administration's attempts to contain China".

"Canberra should realise it will get nothing from Washington in return for its collusion in its schemes, while Australia will pay tremendously for its misjudgement," the editorial said.

"With Australia mired in its worst recession in decades, it should steer clear of Washington's brinkmanship with China before it is too late.

"To put it simply, if Canberra continues to go out of its way to be inimical to China, it's choosing [of] sides will be a decision Australia will come to regret as its economy will only suffer further pain as China will have no choice but to look elsewhere if the respect necessary for cooperation is not forthcoming."

The import ban reportedly targets Australian lobsters, sugar, wine, coal, barley, timber and copper ore and concentrate, which would be a $5-6 billion blow to the value of Australian exports.

Australian exports of wine and rock lobster have been affected.(Unsplash)

China's Commerce Ministry has publicly refused to confirm the reports, but the state-owned Global Times confirmed the "import suspension" yesterday, plunging Australian industries into uncertainty.

The China Daily, an English-language paper run by the Chinese Communist Party, described these as "normal trade investigations" and said they only cover "a small part" of Australian exports.

China is Australia's largest trading partner, with 30 per cent of Australia's exports destined for China.

"The impatience Canberra has demonstrated earlier this week in urging China to accelerate the customs clearance for tons of Australian rock lobsters only betrayed its guilty conscience, since this is merely precaution on China's part," the China Daily editorial said.

"Imported seafood has been confirmed as the source of a number of novel coronavirus outbreaks in the country, which were fortunately quickly contained."

The Prime Minister's office and the Department of Foreign Affairs and Trade referred the ABC to comments made by Trade Minister Simon Birmingham, who said Chinese authorities had denied "rumours" of instructions to ban Australian products.

"What we hope to see is that, given the denials from Chinese authorities, they work as effectively as possible to help, where there are regulatory issues, resolve them in a timely way," he said.  

"It would indeed reflect poorly, given the assurances that have been made, were these issues not to be satisfactorily resolved."

Trade Minister Simon Birmingham said he wanted the trade suspension swiftly resolved.(ABC News: Matt Roberts)

Senator Birmingham had not been able to contact his Chinese counterpart, and said, "the ball is very much in China's court".

"It is disappointing that China refuses to engage at a ministerial level," he said.

The editorial also claimed that: "Canberra has undermined what were previously sound and mutually beneficial ties by prejudicially fuelling anti-China sentiment at home, baselessly sanctioning Chinese companies and aggressively sending warships to China's doorsteps.

"Unlike Washington, Beijing is not offering Canberra an either-or choice, but just reminding it to maintain its diplomatic independence and follow the norms of international relations. To be an ally of the US does not necessarily mean it has to be a roughneck in its gang."

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