Beijing announced Thursday (March 28) it will lift anti-dumping and anti-subsidy tariffs on wine from Australia.

It ends threes years of levies and offers long-awaited relief for Australian producers.

China's Ministry of Commerce spokesperson He Yadong.

"Given the situation in China's wine market has changed, the anti-dumping and anti-subsidy tariff imposed on wine imported from Australia is no longer necessary"

The tariffs, of up to 218.4%, were first imposed in March 2021, along with a number of other trade barriers on Australian commodities.

It began after relations soured between the two countries when Canberra called for a probe into the origins of COVID-19.

Ties have improved significantly since last year.

China has steadily lifted trade hurdles on Australian goods ranging from barley to coal.

Australian wines imported into China used to be subject to zero tariffs.

But by the first half of last year, Australian wine made up just 0.14% of Chinese wine imports.

Official data showed in 2020, before the duties were introduced, it was as high as 27%.

The Australian government said it welcomed the outcome at a critical time for the country's wine industry.