Australian barley exports to China back to pre-tariff levels

The news: Australian barley exports to China are officially back roughly three years after Beijing's anti-dumping tariffs halted trade, Bloomberg reports. But despite a thawing in trade relations, both countries have diversified their trading partners in each other's absence.

The numbers: China imported 314,000 tons of Australian barley in October, the highest level since May 2020 and about a quarter of China's total barley imports for the month. Before the tariffs were imposed in 2020, China was Australia's largest export market for barley, worth up to $1.5 billion a year.

The context: China introduced duties on about 80% of Australian barley in May 2020, accusing exporters of dumping the commodity, effectively blocking imports. As a result, China's beer and feed producers turned to markets like Argentina and France, with France now accounting for 46% of annual barley imports to China. Australia has expanded into other markets such as Saudi Arabia and Japan, Bloomberg reports, while China is broadening its grain suppliers to diversify sources and reduce dependence on western imports.