Originally Posted by
etudiant
I'd classify 200% duties (on Australian wines iirc) as a vigorous 'political' response.
China is on its way to recovering its role as the producer of 40% of global GNP, after an almost 200 year hiatus.
They may have a slogan about political power growing out of the barrel of a gun, but they are quite aware that economic power is as potent, but more easily wielded and more flexible. They are using it effectively against the western 'coalition', as shown by the just negotiated EEC/China trade and investment agreement, which puts all the real issues off to further discussions, while giving China continued free rein, all because Germany is terrified that its auto industry, which is super dependent on the Chinese market, would face a calamity if China closed its borders.
I believe duties on wines and targeting of Australian exports of natural resources, come down to China getting tired of Australia mouthing off while claiming China is an important trading partner.
China decided that Australia is quite free to abuse it.
However as Austalia has a AUS$70 billion trade surplus with China then perhaps abusing the country which is the lynchpin of your economy has its consequences. US has a AUS$19 billion trade surplus with Australia.
Australians will need to get used to the idea that political pronouncements have an economic impact.