The Australian government has made a decision to pull the trigger and launch a second action against China at the World Trade Organisation (WTO), this time over Beijing's imposition of hefty tariffs on wine exports.
China claims Australian winemakers were dumping huge quantities of cheap product on their market subsidised by the government - a practice known as "dumping" used to increase market share.
Asked whether Beijing's possible retaliation to such actions was part of the government's considerations, Mr Tehan said China and all other countries use the dispute settlement mechanism of the WTO.
The process was opened after consultation with Australian wine producers, the government said, declaring itself open to direct dialogue with China to resolve the issue.
Australian Prime Minister Scott Morrison's vocal push for an worldwide inquiry into the origins of Covid in 2020, eventually backed by 120 countries, caused tensions to rise between China and Australia.
Last year, Australia formally appealed to the WTO, requesting a review of China's decision to impose high tariffs on imported Australian barley.
"Australia's use of the WTO in this matter is consistent with its previous use of the WTO and aligns with our support for the rules-based trading system", he said.
Australian winemakers shipped just 12 million Australian dollars (US$9m) of wines to China in the four months from December to March, from 325 million Australian dollars (US$243m) a year earlier, industry figures showed, confirming that hefty new tariffs have all but wiped out their biggest export market. It was a move that followed months of other sanctions on Australian goods, such as barley, beef and coal.
On Saturday, the government said that despite the complaint, Canberra was willing to cooperate with Beijing.
The decision came after long-running issues with its operation including judicial overreach by its members, consistent rulings against US tariffs created to protect American businesses, and slow decision-making.
"A well-functioning WTO that sets clear rules arbitrates disputes objectively and efficiently and penalises bad behaviour when it occurs: this can be one of the most powerful tools the worldwide community has to counter economic coercion", he told the Perth USAsia Centre on June 8.
Earlier in June, Prime Minister Scott Morrison called on the WTO to address the standoff between the two countries and days later won the support of the Group of Seven countries for a tougher stance against China's growing impact on global trade.
"The most practical way to address economic coercion is to restore the world trade body's binding conflict resolution system", he said in a speech just before the summit.