Bloomberg reports on the matter
China is said to be targeting Australian exports of wine, seafood, oatmeal, fruit and dairy if tensions continue to escalate between the two countries amid calls for an investigation into the origin of the coronavirus, according to people familiar with the matter.
Adding that Chinese officials have compiled a list of potential goods to target by implementing stricter quality checks, anti-dumping probes or tariffs, or even resorting to state media usage in order to encourage consumer boycotts against Australian products.
That said, the report notes that a final decision has not been made and any additional measures will depend on how Australia addresses China's objections for the time being.
The aussie is down by about 10 pips on the report to 0.6520 but this holds longer and larger repercussions for the currency and economy if tensions ramp up further.
