Senator Birmingham said the investigation's finding was "erroneous in fact and in substance" and Australia would provide Chinese authorities with detailed evidence of how the wine industry works.
Wine exports to China hit a record A$1.3 billion (US$900 million) previous year, according to Australian government data, making it the biggest market by value for Australia.
The complaints include Australia's tough foreign interference laws and its ban on tech giant Huawei's involvement in the country's 5G network.
There are accusations that Australian producers have been selling wine for below production cost, which is hurting Chinese winemakers.
Cheng, an anchor for China's English-language state broadcaster, has been held since at least August 14, but Australian diplomats said Beijing has given no reason for her detention.
And the two sides are locked in an ongoing row over spying, with China accusing Australia of raiding the homes of Chinese journalists as Canberra investigates an alleged covert influence campaign by Beijing.
It said that it looked into samples from a few Australian firms, including that of Treasury Wines, Casella Wines and Australia Swan Vintage. Australia responded by warning Beijing that its actions could create a perception among businesses and countries around the world that trade with China is risky.
"We hope Australia will provide conditions for bringing bilateral relations back on track", Zhao said.
"That's why we think it is grossly, grossly unfair, unwarranted [and] unjustified".
In an interview to the Sydney Morning Herald (SMH) on November 26, Tom Tugendhat, chairman of Britain's Foreign Affairs Committee expressed deep solidarity with Australia as that country finds itself in China's crosshairs.
From a cool war that saw coal ships being delayed in unloading and seafood rejected for quality reasons we are now at the point of draconian sanctions on our trade.
On Friday trade minister Simon Birmingham spoke out against the move. China won't be able to import products including coal, barley, copper ore and concentrate, sugar, timber, wine and lobster, people familiar with the situation said earlier this month.
Federal Agriculture Minister David Littleproud also suggested the imposition of tariffs had little to do with any wrongdoing by the wine industry.
The ministry said it was making the move in response to "substantive harm caused to the relevant domestic wine industry".
Importers bringing in Australian wine will need to pay deposits to China's customs authority, which will be calculated based on different rates the authority has assigned to various companies, according to the statement. "We're a sovereign nation, we expect to be treated with the respect of a sovereign nation", he said.
"Again, quite surprised, also deeply surprised and concerned about the level of these interim provisional tariffs that have been put on. We're a fair trading nation".
The simmering trade dispute between Australia and its biggest trading partner is now out in the open.
Wine exports to China hit a record A$1.3 billion past year, according to Australian government data, making it the biggest market by value for the product.
