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Government figures have refused to view China’s decision to delist four of Australia’s abattoirs as a “retaliatory” stance taken by the Communist party against Australia, according to Sky News political editor Andrew Clennell.

The threat to boycott Australian goods floated by the Chinese Ambassador has escalated with Beijing stating its intention to impose an 80 per cent tariff on Australian barley and delisting three abbatoirs in Queensland and one in NSW, which account for about 35 per cent of beef exports to China.

The decision to immediately suspend the four abattoirs was attributed to labelling and health certificate requirements.

“The government wants to keep a lid on this, but we’re not silly and we can see what is going on,” Mr Clennell said.

“No one is expecting the Chinese to change their minds,” particularly since the communist party has previously engaged in “retaliatory action” along these lines before.

Mr Clennell said the prime minister would “stick to” the independent investigation, but would seek to “keep the peace” when it comes to relations with China.

Sky News host Peta Credlin said red meat was “one of our biggest Chinese exports” and this decision would have “huge ramifications for country Australia”.

Image: Associated Press