The Australian government is concerned speculation around trade tensions with China will have troubling economic impacts.

Chinese authorities have reportedly called on businesses to halt imports of Australian produce such as lobster, wine and barley, a claim they deny.

Agriculture Minister David Littleproud told Jim Wilson there’s a danger that “jumping to conclusions” will create artificial market mechanisms.

“The last formal notification we had was a rejection that there was any discrimination against Australian products.”

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While some are calling on the government and industry to cut off ties with China over the debacle, to do so is a trade-off for jobs and prosperity former ambassador to China Geoff Raby warned.

“Understand this will lead to a very big reduction in our national welfare, and our incomes,” he told Jim Wilson.

“There are no alternate markets of the scale of China’s.

“We will have lots of lobster on our table much cheaper for Christmas, but it’s not going to make us wealthier.”

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Image: Getty