The Chinese ambassador says a review of tariffs on Australian wine is on track but it’s not yet clear if the matter will be resolved by the end of the month.

China is reviewing sanctions on wine under a five-month process after the Australian government agreed to suspend a dispute lodged with the World Trade Organisation (WTO) until March 31.

“Currently, Chinese authorities are reviewing and investigating our tariffs on Australian wine and things are moving on the right track, in the right direction,” Chinese Ambassador Xiao Qian told the Australian Financial Review Business Summit on Monday.

During a period of heightened diplomatic tension in 2020, Beijing imposed $20 billion in sanctions on Australian products, including wine.

Sanctions on some products have already been lifted, including tariffs on Australian barley.

On Sunday, Australian Trade Minister Don Farrell said the government was waiting for Beijing to complete the review of wine tariffs, but the work was on track.

He also said Australia would win its dispute over tariffs on wine exports if the matter returned to the WTO later this month.

Speaking at the conference, Mr Xiao also said the suspended death sentence given to imprisoned Australian writer Yang Hengjun may not be carried out, provided no further crimes are committed.

The official said there was “theoretically … a chance he will not be executed”.

Dr Yang was found guilty of espionage charges in China in February after spending five years in prison.

This post was originally published on Michael West.