Australia is blocking a Chinese takeover of some its oldest food brands as its trade war with Beijing escalates.
Scott Morrison’s government quashed a A$600 million (£325 million) deal to stop dairy products, including the venerable Dairy Farmers label, being sold to Mengniu Dairy.
On Tuesday, Beijing announced an inquiry into Australia’s £660 million wine exports to China, which could lead to tariffs and import curbs.
Rules governing foreigners buying Australian assets were tightened by the Morrison government in late March. They were meant to stop opportunists seizing on the Covid-19 crisis to snap up distressed local assets, and coincided with a deterioration in relations between Canberra and Beijing amid claims of spying, hacking, influence-peddling and blame over the virus.
Josh Frydenberg, Australia’s treasurer,