Exporters are pivoting to other markets such as Vietnam, Indonesia, and Malaysia as a result of tariff management that is costing firms substantial amounts.
'For those firms trading in the Asian region, especially with China, there is growing disillusionment with the difficulties of managing international relationships,' said the Australian Chamber of Commerce and Industry.
'Their view is the federal government should not be playing out its frustrations with the Chinese Communist Party in the media but to be addressing this more discreetly at the government level behind closed doors, so to speak,' said the chamber.
The relationship decline continues after Prime Minister Scott Morrison's government called for independent investigators to enter Wuhan, where the Covid crisis began, to look into its origins. As a result, Beijing has inflicted tariffs on Australian barley and wine and has blocked coal shipments.
The report comes as relations between Australia and its largest trading partner, China, have declined for more than a year after Prime Minister Scott Morrison's government called for independent investigators to enter Wuhan, where the coronavirus began, to look into its origins.
Beijing has since inflicted a range of trade reprisals, including crippling tariffs on Australian barley and wine, while blocking coal shipments.
Trade minister Dan Tehan commented on the entire ordeal, stressing the difficulty associated with the matter.
'We want to continue our constructive economic engagement with China. Obviously, at the moment that is difficult. But one of the things we're very committed to is to be patient and try to make sure we're doing everything that we can to get that constructive engagement happening again,' said Mr Tehan.