The federal Treasurer has discouraged businesses from relying on China after Australia’s security pact with the US and UK.

The federal government has not ruled out economic sanctions from China as a reaction to the AUKUS pact.

Earlier this year, it imposed hefty tariffs on Australian barley and wine and blocked coal and other products.

“In terms of China, we have been subject to economic coercion,” Treasurer Josh Frydenberg told Peter Psaltis.

“Australian exporters, Peter, have been very nimble and very active in being able to find new markets.

“Business has to be conscious that they can’t put all their eggs in one basket, and that’s what the Australian government is helping them to do.”

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