This week, investments in Australia for exposure to China markets took another hit: China announced an anti-dumping investigation into Australian wine exports to China. Treasury Wine, a major exporter and investment portfolio favourite, took a substantial hit. This Chinese action follows recent actions on Australian barley and some beef exporters.

Is it time to abandon Australian investments with China exposure? Is this part of a broader Chinese punishment of Australia for its stances on issues such as the investigation of Covid-19 sources, the South China Sea and the increasing anti-China rhetoric in the media? In short, is this a foreign policy response rather than a commercial response?

Or are these actions part of the usual pattern of trade and commercial decisions undertaken as part of the normal to-and-fro on trade patterns under the umbrella of the WTO and its rules-based trade structure?

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