The ABC understands that China is on track to lift tariffs of up to 200 per cent on Australian wine at the end of March after Trade Minister Don Farrell met with his Chinese counterpart Wang Wentao.

The two ministers held a meeting on the sidelines of a World Trade Organisation conference in Abu Dhabi on Monday night, where they discussed the tariffs, among other issues.

In 2020, as part of the diplomatic fallout over investigations into the origin of COVID-19, China slapped hefty tariffs and trade restrictions on several Australian industries, effectively halting exports from those sectors to China.

Most of those restrictions have now been removed, but they remain on wine, lobster and some abattoirs.

Australia raised a dispute with the World Trade Organization (WTO) over the wine tariffs, before suspending it last October after China agreed to hold its own five month review, with the expectation it would remove the tariffs during that period. 

Mr Farrell had threatened to "immediately" resume the WTO appeal if China did not lift wine tariffs by the end of that review on March 31.

Wine tariffs expected to be gone before April

The ABC has learned that during the high level meeting overnight the Chinese commerce minister indicated to Mr Farrell that the review was on track to conclude next month, with the wine tariffs to be lifted.

No indication was given on when China's remaining trade restrictions on lobster or beef would be lifted.

It will be welcome news for the wine industry, which was hit hard by the tariffs of up to 200 per cent, with China then the industry's biggest export market, accounting for 40 per cent of the value of Australian wine exports.

While the sanctions damaged some of the industries affected, economists noted Australia's overall economy was not greatly impacted, and trade with China in other key export industries not targeted by trade restrictions, such as iron ore, continued.

Minister believed to have discussed Yang Hengjun with counterpart

The ABC understands Mr Farrell also discussed the sentencing of Australian man Yang Hengjun, as previously reported by the broadcaster.

Mr Yang was handed a suspended death sentence earlier this month, which Prime Minister Anthony Albanese labelled "an outrage".

It is the latest development in the gradual warming of relations between the two countries, which went into a diplomatic deep freeze after Australia called for an inquiry to investigate the origins of COVID-19 at the start of 2020, and China imposed trade restrictions in response.

The relationship began to thaw out with the election of the Albanese government in 2022, when high level political contact resumed and China began to lift sanctions on several industries.