China has suspended beef imports from four major Australian meat processors. Foreign Ministry Spokesman Zhao Lijian told reporters that China’s customs agency found the Australian companies violated inspection and quarantine requirements and suspended the imports to “ensure the safety and health of Chinese consumers.” Labeling issues were also cited by Beijing when the same companies and two others lost their licenses to ship beef to China in 2017 for several months. Zhao added that the suspension was unrelated to the bilateral dispute over Covid-19, but blasted Australia’s demand for a coronavirus inquiry as “erroneous words and deeds” and warned against “using the epidemic to engage in political manipulation.”

Australian Trade Minister Simon Birmingham described the import suspension as “disappointing”. “We are concerned that the suspensions appear to be based on highly technical issues, which in some cases date back more than a year,” he said. “We will work with industry and authorities in both Australia and China to seek to find a solution that allows these businesses to resume their normal operations as soon as possible.” Birmingham said Kilcoy Pastoral Co, JBS’s Beef City and Dinmore plants, and the Northern Cooperative Meat Co have been banned from exporting beef to China due to issues with labeling and health certificates. Australian Meat Industry Council Chief Executive Patrick Hutchinson said the companies made up approximately 20% of Australian beef exports to China. Australian meat exporters were aware of Chinese labeling requirements, Hutchinson said.

Worth more than AUD3 billion, Chinese demand for Australian beef surged in 2019, fueled by a growing middle class and as consumers switched to eating beef as pork availability fell during a swine fever outbreak which decimated Chinese hog herds. JBS said in a statement it was working with Australian officials “to understand the technical issues that China has raised” and would take corrective action, the Shanghai Daily reports.

Australian Trade Minister Simon Birmingham has warned China’s “unpredictable” trade interventions may force Australian producers to sell to other markets and Australia reserves its right to take the case before the World Trade Organization (WTO).