The prospect of China lifting its crippling sanctions on Australian wine exports have strengthened with news Chinese foreign minister Wang Yi has pencilled in a two-day visit to Australia in the second half of March.
If Mr Wang does visit for wide-ranging, high-level talks he would be the highest-ranking official to visit Australia since 2017, in a further sign of thawing relations between Canberra and Beijing.
Insiders said that "reading between the lines" the visit from China's top diplomat would come with a an announcement that the state will lift sanctions worth $1 billion on Australian wine effectively immediately.
China slapped sanctions worth $20bn on Australian products during the height of diplomatic tensions in 2020, after the then-Coalition government called for an independent inquiry into the COVID-19 pandemic.
Last November Australia and China agreed on a pathway for the removal of China's wine duties after China initiated an expedited review of its duties on Australian wine.
In return Australia agreed to suspend the World Trade Organisation dispute against the bans until 31 March this year, meaning that China must lift its sanctions on or before March 31 or Australia will continue its WTO complaint.
The news follows a meeting between Trade Minister Don Farrell and his Chinese counterpart Wang Wentao on the sidelines of the 13th WTO Ministerial Conference, Abu Dhabi.
During the meeting, Mr Farrell pushed for the removal of all remaining trade impediments, including lobster and wine.
Mr Wentao, China's Minister of Commerce, confirmed in the meeting that China's review on wine duties was on track to conclude in the agreed time frame.
The news was welcomed by diplomatic officials who feared the sentencing of Australian writer Yang Henjun to a suspended death sentence would disrupt short-term relations.
Senator Farrell also advocated on behalf of Dr Yang, who was found guilty of espionage charges in China in February after spending five years in prison, in the meeting with Mr Wentao.
Mr Wentao has also formally accepted an invitation offered by Senator Farrell to visit Australia at a future date, including potentially his home state of South Australia.
Prior to the introduction of the duties, China was Australia's largest export market for wine. At its peak it was worth $1.1 billion in 2019 but China's duties effectively blocked all wine trade.
Mr Wang's visit would come ahead of a trip by Premier Li Qiang to Australia later this year.
