China has flagged that it intends to further penalise Australian wine exporters with the extension of tariffs for another five years.

Chinese continues to falsely assert that the measures, which were introduced in November last year, are being imposed because Australia was dumping cheap wine into the Chinese market.

The tariffs of up to 220 per cent are severely impacting the wine industry, who will be looking to expand other overseas markets to compensate for the Chinese downturn in demand.

The Australian wine industry is expected to ask the Federal Government to approach World Trade Organisation (WTO) for help.

Other exports including coal, barley, beef, lobster and timber were also hit with tariffs and other sanctions.

Earlier this week, Federal Government officials told Senate Estimates the value of Australian trade with China for nearly all industries has declined by 40 per cent since the trade dispute intensified. Wine exports had dropped to less than $1 million in January, from a high of $164 million last October.