Relations dropped to a new low on Monday after Chinese Foreign Ministry spokesman Zhao Lijian tweeted a “repugnant” fake image of an Australian soldier holding a knife at the throat of an Afghan child, drawing condemnation from Prime Minister Scott Morrison.

The provocative act shocked Australians and comes after a series of Chinese trade decisions against Australian products.

China has introduced huge tariffs of up to 212 per cent on Australian wines for alleged dumping and 80 per cent tariffs on barley, as well as suspending barley imports over allegations of pests. Other products impacted by actions include beef, copper, cotton, lobsters, sugar, timber, tourism, universities, wheat and wool.

Last week it emerged that 53 ships carrying Australian coal have been stuck at Chinese ports for more than a month without being able to offload their cargo. Some of the ships left Australia in May.

While China has argued its actions have a legitimate basis, Australian Strategic Policy Institute defence director Michael Shoebridge believes it could also show that China uses “trade as a weapon”.