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Australia worries about possible Chinese embargo on its coal

2020-10-13T11:13:27.019Z


The Australian government has asked through diplomatic channels whether this was China's intention. An embargo on Australian coal would have serious consequences for the country's economy.


Canberra on Tuesday asked Beijing to clarify matters as several media echoed possible Chinese restrictions on imports of Australian coal, which could further plague an Australian economy battered by the pandemic.

Read also: Australia is no longer afraid to get angry with China

Trade Minister Simon Birmingham said he had asked China through diplomatic channels whether it had in fact instructed Chinese groups to stop buying Australian coal, which would be a retaliatory measure against a backdrop of deteriorating prices. bilateral relations.

"

I have had discussions with the Australian industry, and we are getting closer to the Chinese authorities on this speculation,

" he told Sky News.

He did not go so far as to confirm that an unofficial coal embargo had been put in place.

But his words tend to give credibility to a certain amount of information that has been circulating in recent weeks.

I don't want to get into this speculation, but we are working with the industry, we are taking action and we are talking with China,

” he said.

Several trade publications, including S&P Global Platts, have reported that state-controlled Chinese steel mills and energy suppliers have been "

verbally instructed

" to stop buying Australian coal from authorities.

Tuesday afternoon, a spokesperson for the Chinese Foreign Ministry questioned on this issue invited journalists to turn to other competent authorities in the matter.

"

Healthy and stable relations between China and Australia are in the mutual interest of both countries, but both sides must make efforts,

" said Zhao Lijian, before urging Canberra "to

do more in favor of mutual trust between China and Australia

”.

Tense Australia-China relations

Relations between China and Australia, already strained on a whole series of files, got even worse when Prime Minister Scott Morrison supported American requests for an investigation into the coronavirus epidemic that appeared in China.

A Chinese embargo on coal would have serious consequences for an Australian economy very dependent on its raw materials, and which is experiencing its first recession in 30 years because of the impact of the pandemic.

It would also be a slap in the face for the Australian conservative government which, turning a blind eye to environmental considerations, has only recently affirmed its unconditional support for the coal industry in order to please a whole section of its electorate.

Australian ministers said they are finding it increasingly difficult to reach out to their Chinese counterparts amid deteriorating bilateral relations.

Australia's largest trading partner, China suspended beef imports from four major Australian suppliers in the spring, then imposed tariffs of 80.5% on Australia's barley.

Then, in June, Beijing invited Chinese tourists and students to avoid Australia, justifying this recommendation by “

racist

incidents

against people of Chinese origin.

Beijing recently launched an anti-dumping investigation into Australian wine, which could lead to heavy taxes.

Read also: Divorce is consumed between China and Australia

The Australian Prime Minister on Tuesday downplayed the problem of a risk of escalating trade disputes with Beijing.

It is not uncommon for national quotas to be in effect in China.

This happens a lot, especially when it comes to coal, they have their own mining industry

, ”he said.

"

I can only imagine, based on our relationship and the discussions we have with the Chinese government, that this is part of their normal procedure

."

Source: lefigaro

All news articles on 2020-10-13

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