Australia is fighting back with targeted penalties for Chinese companies who sell steel and aluminium windows at a loss, which disadvantage local manufacturing.
Chinese manufacturers have been dumping government subsidised goods on the Australian market at artificially low prices.
Aluminium window manufacturer Zhuhai Yipeng was hit with a 51.3 per cent tariff this month by the Anti-Dumping Commission.
The company was slugged the charge on its products amid complaints from the Australian Glass and Windows Association that it was at risk of forcing local manufacturers to shut their doors.
A source with knowledge of the investigation said it was a “positive step” but more needed to be done to protect Australian manufacturers.
Cut price Chinese hot-rolled coil steel, which is used in the building industry, pipelines and manufacturing, was hit with tariffs of up to 82 per cent.
Tim Piper, of the Australian Industry Group, said China was dumping government subsidised goods on Australia, which made it difficult for Australian companies to compete.
He called on the Federal Government to target subsidies to Australian companies to level the playing field.
“We need to accept that the government has to pay a little bit more on our behalf to support manufacturing,” he said.
“If we simply allow the import of subsidised Chinese products then we lose that capability.
“We used to have that with the car industry, which created innovation in other areas.”
“Look at fuel security and the supply of oil. We are at the very end of a long supply chain relying on fuel coming from 10,000km away. It’s been a wake up call.”
Mr Piper’s plea comes as a Growth Intelligence Centre poll found an overwhelming number of respondents (78 per cent) say Australia should be self reliant in agriculture.
That was just above the 77 per cent who say Australia should be more self reliant in energy and fuel, while two thirds say self reliance was important for defence and pharmaceuticals production.
As many as two in three Australians say they will buy Australian made goods regularly and 57 per cent say they will pay more if products are made here.
The findings come as the boss of a vitamin manufacturer, who has just invested $250 million in a new factory in Sydney’s west, called on Australians to take self-reliance seriously.
Aniss Chami said the green and gold logo on his company’s products was a badge of honour.
“I feel like I feel there’s a duty to ensure that we focus on not having Australia bend the knee to other countries and other big multinationals to gain access to medicines for Australians,” Dr Chami said.
“We’ve always had this focus at Vitex, Australian medicines should be of the highest quality for Australians made by Australians.”
He said the Covid-19 pandemic and the recent medicine shortages sparked by the Iran war had underlined the need for Australia to be self reliant.
Tom Loveard, of Field Sense Robotics, is working on a new drone vehicle that could replace some of the work currently done by farmers sitting on tractors for hours each day.
The vehicle, which is being made in Melbourne, will be an affordable alternative to conduct weed and fertiliser spraying on farms.
“Our systems cost much less than a tractor to buy and can run all day on a few dollars of power. That’s a game changer for farmers,” he said.
“This will help keep Australian farms in Australian hands.
“We can drive the technology from the needs of our own farmers, not simply accept the technology as it comes from the US or Europe.”
Pete Doolan, a farmer in south west Victoria who has trialled the farm robot, said the cameras on the small vehicle – about the size of a hatchback – would reduce the amount of chemicals used.
“Instead of just spraying, the cameras can see a weed and just spray that area. It means less chemicals used, as well as saving money,” he said.
“They are planning to set it up so it could be used for eight hours at a time, so just set it up before you go to bed and then move the trailer once that area is done.”
Mr Doolan said new technology would help encourage younger generations to stay in farming.
“It’s not just the physical stuff anymore, there’s a lot of technology in farming now,” he said.
Defence manufacturing is also increasing, with the Ukraine war up-ending traditional thinking around weapons.
Sypaq in Port Melbourne has been building drones for export to the Ukraine, while the Ghost Shark – a drone submarine – is being manufactured in Sydney.
Boeing is also making a drone jet known as the Ghost Bat, which is the first aircraft to be designed and manufactured in Australia for more than 50 years.
Thales Australia has recently won a new contract to supply rifles to NSW police.
Andrew Downes, of Thales Australia, said: “These are rifles built in New South Wales to protect the people of New South Wales and beyond.
“Security for our nation is something Lithgow Arms has been delivering for generations.”
Minister for Industry and Innovation of Australia Tim Ayres said the government was funding areas “where Australia has significant competitive advantage”.
“Through the $15 billion National Reconstruction Fund, the Government is investing in a broad range of advanced manufacturing including med tech to defence technology, enabling capabilities like robotics and quantum, and value-add in agriculture and resources,” he said.
“The Government is also focused on building national research, science and technological capability to secure good jobs in Australia’s regions and outer suburbs.”
Adam Leto, the CEO of the Western Sydney Leadership Dialogue, a leading advocacy group, said “very few places in the nation are as well-placed to drive the next era of manufacturing as Greater Western Sydney”.
“Western Sydney has always been a region of makers, builders and innovators – it’s part of our DNA,” Mr Leto said.
“Manufacturing has underpinned Western Sydney’s economy since the 1950s, and unlike many other industrial regions which have fallen away over the past few decades, it has managed to remain a major employer.
“This was once the epicentre of manufacturing in this country, and there’s no reason it can’t return to those halcyon days – particularly given the region’s high concentration of talent, skills and businesses.”
The Back Australia series is supported by Harvey Norman, Ampol, Bunnings, Qantas, AAMI, Journey Beyond, Gippsland Critical Minerals and News24.