- China successively announced anti-dumping investigations on Australian beef, imported barley and wine.
- China has suspended its purchase of Australian coal and has' verbally informed' power plants and steel plants.
- The potential loss of coal exports to China may extend Australia's economic recovery by months or even a year.
China’s coal ban may cost Australia US$15 billion a year.” As many foreign media hyped the news that “China suspends coal imports from Australia”, “Australia News Network” 18th issue published an article by Tariq Brook, a well-known Australian journalist. According to the article, if China announces the ban, it will mark the “biggest escalation” in the China-Australian trade conflict.
The article said that after China successively announced anti-dumping investigations on Australian beef, imported barley, wine, and hit Australian related industries, in recent weeks, a more worrying sign has appeared-Beijing may be moving to a large scale. Larger and more important industries for the Australian economy are added to its “target list”, namely coal exports.
The article quoted a number of foreign media sources as saying, “China has suspended its purchase of Australian coal and has’ verbally informed’ power plants and steel plants, and the port has also been told not to unload Australian coal.” It may cause an annual trade gap of $15 billion for Australia and a huge blow to its economy.
The article stated that although the Australian government has not yet received an official written notice of the ban if the ban comes true, it will mark the “biggest escalation of the conflict so far” as the China-Australian trade relations continue to be tense.
Subsequently, Brooke worried that just as Australia was trying to recover from the economic shock brought by the new coronavirus epidemic to the country, through this move, Beijing would “effectively” cause Australia to cost $15 billion per year.
Brooke said that China is currently recovering from the economic recession of the new coronavirus pandemic through unremitting efforts. However, in today’s economic environment, the potential loss of coal exports to China may extend Australia’s economic recovery by months or even a year.
Not only that, the article quoted analysts as saying that the ban may be implemented for a long time. Atilla Windell, chairman of Navigate Commodities, said, “China’s dependence on Australian coal imports is low, so we have little reason to suspect that such verbal warnings may continue indefinitely as a potential retaliatory measure’ against recent political tensions.”
In addition, the article also mentioned that with China’s commitment to achieving carbon neutrality by 2060, China is increasingly welcoming renewable energy sources. Therefore, the decline in coal exports is also a reality that Australia will face sooner or later.
“As the new coronavirus pandemic continues to raging in Australia and overseas, many people have never thought that China’s demand for Australian coal can be completely stopped overnight.”
Brooke emphasized in the article, even though the Morrison government has repeatedly claimed Australia’s Sovereignty and freedom “will not be affected by China”. Australia also needs to recognize that this so-called “independence” will have a huge price. “Australia may pay a heavy price for its actions sooner than many people expected.”