Things like this is the point of the EU, not creating swaths of regulations about how much or little banannas can be bent.
A place like Australia (alone) could never stand up to China. They would be too willing to make an example of a small country that crosses them. China trade comes with huge amounts of political pride and convenience. Even if Australia joined forces with a larger block we risk being g made an example of like that general saying he would sink an Australian ship to send a message to the US.
I feel in the past countries would stick to their commitment for the bigger picture. Now, not so sure. I wonder if they would weigh pros and cons and decide to withdraw or not.
Funny enough this was what the WTO was supposed to be for.
But there has to be a price, or the leveraging game will continue.
When there is enough collective power they will waver as we can see in the current US-China negotiations.
The trade balance heavily favours EU and the US and the materiality of that fact becomes evident as soon as someone has the cohones to play the card.
Right now as China is facing an existential turning point with much lower rates of growth, is a good time to do it. And sooner is always better.
China will continue to do this and laugh at the naiveté their victims.
There's no reason for them to stop until there is one.