Australia refers China to the World Trade Organisation amid deteriorating diplomatic relations

Australia will ask the global trade umpire to settle a dispute that centres on China's decision to level massive tariffs on barley.

Trade Minister Simon Birmingham. Source: AAP

Trade Minister Simon Birmingham is seeking help from the World Trade Organisation to resolve a dispute with China over massive tariffs imposed on Australian barley.  

China imposed an 80 per cent tariff on Australian barley imports in May - claiming the product had been imported against trade rules.

Trade tensions between Australia and China have intensified following months of disputes over cotton, timber, rock lobster, beef, wine and coal. 

"This is the logical and appropriate next step for Australia to take," Mr Birmingham told reporters in Canberra on Wednesday.

"We are highly confident that based on the evidence, data and analysis that we have put together already, Australia has an incredibly strong case to mount."

China claims the tariffs are a result of an anti-dumping investigation, a claim rejected by the Australian government and growers.

It comes after China appeared to defend its alleged ban on Australian coal and accused Australia of playing the victim in the increasingly tense trade standoff between Canberra and Beijing. 

Mr Birmingham told reporters on Wednesday the risk profile of trading and doing business with China had no doubt increased throughout the course of the year. 

"The fact that China has accumulated a series of decisions that look like sanctions against Australia obviously changes that risk proposition for Australian businesses and industries," he said.

The Nationals Farmers Federation has warned the barley tariffs risked taking almost $500 million in value out of the current barley crops.

The trade minister insists all processes and courtesies were offered to the Chinese government before making a decision to appeal the dispute with the global trade umpire. 

The decision is unlikely to please China, who has questioned Australia for “politicising economic, investment and technological issues".

China also claims Australia has discriminated against Chinese companies - in violation of international trade rules - by hampering their ability to invest in Australia.

Mr Birmingham said Australia has simply acted in its national interest.

He also extended an offer of dialogue to China as an "off-ramp" to work towards resolving the barley dispute.

Senior government ministers have for months been unable to contact their Chinese counterparts.