There are promising signs China's trade sanctions against Australia will be dropped as progress is made to restore the frayed diplomatic relationship.
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CHINA'S TRADE SANCTIONS
China has $20 billion worth of trade sanctions against Australia, with barley, wine, meat and crayfish the key export products affected by the trade ban.
WHY IT MATTERS
China is Australia's biggest trading partner, and the trade sanctions have put pressure on some industries reliant on the Chinese market.
However, many industries have been able to diversify and find other export markets.
WHY CHINA ENFORCED TRADE SANCTIONS
Australia's relationship with China has deteriorated in recent years.
Ties were stretched further in 2020 when the former coalition government called for an international inquiry into the origins of COVID-19.
This prompted the Chinese government to impose the trade bans on Australian imports.
SIGNS OF CHANGE
Australia has started to repair its relationship with the Chinese government, with Prime Minister Anthony Albanese meeting with President Xi Jinping at the G20 summit in November.
This was the first meeting between and Australian prime minister and the Chinese president in six years.
In the week before Christmas, Foreign Minister Penny Wong also visited China to discuss trade sanctions and other issues.
On Thursday, Trade Minister Don Farrell said there were "positive signs" China would drop the trade sanctions against Australia.
Australia's two World Trade Organisation cases against China continue to pose a challenge, with the federal government planning to press ahead but leaving the door open to discussions with the Chinese government to resolve the issue directly.
Senator Farrell is expected to meet with his Chinese counterpart soon.
Australian Associated Press
