Canberra swiftly responded by dropping its case against Beijing at the World Trade Organization, welcoming an end to sanctions that had plunged many Australian winemakers into crisis.
Duties were imposed on key Australian exports such as wine, barley and beef in 2020 after Canberra legislated against overseas influence, barred Chinese telecom giant Huawei from 5G contracts and called for a probe into the origins of the Covid-19 pandemic.
China was the largest destination for Australian bottled wine before the sanctions were imposed, accounting for 33 percent of export revenue in 2020, data from the Australian government shows.
But trade restrictions have tapered since Australia's centre-left government was elected in 2022 and adopted a less confrontational approach.
Beijing's commerce ministry said the lifting of what it called "anti-dumping duties and anti-subsidy duties" on wines from Australia was due to "changes in the market situation of the relevant wines in China".
They will be lifted on Friday, it said.
Tariffs and barriers have already been removed from commodities including Australian coal, timber and barley.
The foreign ministers of both countries also met this month in another sign tensions were easing.
"The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers," Australian Prime Minister Anthony Albanese, Foreign Minister Penny Wong and Trade Minister Don Farrell said in a statement Thursday.
"The removal of duties means that Australia will discontinue its legal proceedings at the World Trade Organization," they said.
Canberra will continue to lobby for the removal of remaining trade restrictions, including on rock lobsters and beef from some abattoirs, they said.
- 'Positive step' -
The tariffs added up to 200 percent to the cost of Australian wine shipped to China and effectively halted trade worth $1 billion a year.
Australian winemakers responded by turning to other Asian markets, including Hong Kong and Thailand.
Melbourne-based Treasury Wine Estates chief executive Tim Ford said the announcement was a positive step for the Australian wine industry and wine consumers in China.
He said the company, which owns luxury wine brand Penfolds, looked forward to reestablishing its foothold in the China market.
And in Beijing, wine shop owner Yang Jie told AFP he welcomed the "good news".
Australian red wines had previously been his "main product" due to its popularity with Chinese drinkers, he said.
"But they have been out of stock for a year or two," he said.
"After the opening, we can put these red wines back on the shelves."
Beijing said following the move it was "willing to continue to strengthen dialogue and cooperation with Australia".
But, while bilateral trade has made some recovery, the two countries remain at odds in strategic areas.
Australia expressed "outrage" last month after Beijing handed a suspended death sentence to Chinese-Australian dissident writer Yang Jun.
Australia and its allies are also seeking to parry China's expanding reach in the South Pacific.
Canberra and Washington were jolted into action after Beijing signed a secretive security deal with Solomon Islands in 2022.
Australia also supports the United States and some Asian countries in opposing Beijing's sovereignty claims over the South China Sea.
The highs and lows of recent China-Australia relations
Beijing (AFP) Mar 28, 2024 -
China on Thursday announced the lifting of punitive tariffs on Australian wine, in a sign that the precarious bilateral relationship could be improving despite setbacks.
Here is a look at China-Australia ties over recent years:
- Australia bans Huawei -
Beijing has said Canberra fired "the first shot" in the deterioration of relations when, in 2018, it effectively banned Chinese telecom giants Huawei and ZTE from rolling out Australia's 5G network over security concerns.
The move followed growing Australian disquiet over Chinese influence in its domestic politics, as well as in its traditional sphere of interest in the South Pacific.
- Coronavirus origins -
In April 2020, Australia joined the United States in calling for a thorough investigation into the origins of the Covid-19 pandemic.
The announcement triggered an outraged response from the Chinese ambassador, who warned it could lead to consumer boycotts of Australian products.
- Trade hit -
Beijing suspended imports from four major Australian beef suppliers weeks after the ambassador's warning.
Neither side openly linked the suspension to the call for an inquiry, citing technical issues instead.
However, China soon after announced anti-dumping tariffs on barley, as well as timber and later wine.
- Hong Kong -
Australia further enraged Beijing when it was among Western countries that accused China of violating its legally binding international commitments on Hong Kong, after the imposition of a tough security law on the city in June 2020.
Canberra also offered pathways to citizenship or residency to Hong Kongers looking to leave because of the new law.
- Detention, spying -
Tensions spiralled further over the detention by China of two high-profile Australian citizens: Chinese-Australian dissident writer Yang Jun in 2019 and journalist Cheng Lei in 2020.
Two other Australian journalists were rushed out of China in September 2020 after police sought to question them.
That year, Beijing also accused Canberra of raiding Chinese journalists' homes as it investigated an alleged covert influence campaign.
- Goodbye BRI -
Australia revoked in April 2021 the Victoria state government's deal to join the sprawling Belt and Road infrastructure programme, a central pillar of leader Xi Jinping's bid to expand China's influence overseas.
Canberra said the deal did not meet national foreign policy priorities but the Chinese embassy said its scrapping was "unreasonable and provocative".
- New government, fresh start? -
Australia elected a new government in May 2022 and with it a less confrontational tone on China.
A meeting in November that year between Xi and Labor Prime Minister Anthony Albanese was the first meeting between top Australian and Chinese leaders in more than five years.
China halted an import ban on timber, resumed shipments of coal and dropped tariffs on Australian barley as other stalled dialogue resumed over the course of 2023.
Suspensions were also lifted on three major red meat abattoirs.
Cheng, the jailed journalist, was released from prison in October after more than three years in detention.
- 'Handsome boy' -
The high point of recent relations came in November 2023 when Albanese visited Beijing and was treated to a gala welcome.
A smiling Xi promised Australia and China could become "trusted partners" and collaborate on everything from climate change to regional security.
Premier Li Qiang went one step further, calling Albanese a "handsome boy" in reference to a viral clip of the Australian leader jogging.
Albanese met Xi for the second time that month on the sidelines of a summit in San Francisco.
He said he had invited Li to visit Australia and that he had asked Xi to remove remaining trade restrictions on Australian products.
- Sonar pulses -
However, just days later, the two sides exchanged charges of reckless behaviour following an incident off Japan in which Canberra said a Chinese warship emitted sonar pulses that injured one of its naval divers.
Beijing told Canberra its accusations that a Chinese destroyer had acted aggressively towards the Australian frigate were unfounded.
- Yang Jun death sentence -
Beijing confirmed in February that writer Yang had been sentenced to death with a two-year suspended execution and had all his property confiscated.
Australia conveyed dismay but also "outrage at this verdict", Albanese said.
Yang, whose pen name is Yang Hengjun, was detained on spying allegations.
The writer has denied the accusations and claims he has been tortured by Chinese authorities.
- Wine tariffs lifted -
China's commerce ministry said on Thursday it was lifting punitive tariffs on imports of Australian wine, a move that Canberra's top politicians said would "benefit both Australian producers and Chinese consumers".
The decision came days after a meeting between Chinese and Australian foreign ministers.
Australia in return said it would discontinue legal proceedings against China at the World Trade Organization.
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